Capital Markets

By John Hintze Two surveys say nonfinancial firms are falling behind in Libor transition efforts. Nonfinancial companies are taking a passive approach to prepping for the transition away from Libor, relying heavily on their banks and other financial firms to carry most of the burden. According to recent surveys, however, the financial community is lagging. In its recently published “Liboration: A practical way to thrive in transition uncertainty,” Accenture spells out financial services firms’ lackadaisical efforts toward the transition, even…

Interest in ESG investing is blossoming as companies search for purpose beyond profits.  WHY: You can do good and do well. Academic research cited by DWS “provides strong evidence that environmental, social and governance factors positively influence corporate valuation and investment performance.” Also: “ESG data can potentially help mitigate against both idiosyncratic and systematic risks.“90% of ESG study results demonstrate that prudent sustainability practices have a “positive or neutral influence on investment performance.“Key takeaway: Think about ESG as another risk factor in your screening criteria which…

One big eye-opener for many attendees at NeuGroup’s Tech20 2019 first-half meeting was sponsor Societe Generale’s suggestion that their floating-rate debt capacity was higher than they (most likely) currently thought it was—provided they hedge their FX, that is. Why? Because, according to this view, the FX hedge program reduces one’s net floating-debt exposure. In addition, if you agree that a recession is coming, rates will be staying put or going lower, making floating debt even cheaper. It pays to favor…