Capital MarketsCompliance
September 23, 2021

Caution at the 10b5-1 Intersection: Buyback Plans and Insider Sales

Companies using 10b5-1 plans for buybacks should keep informed about possible SEC rule changes aimed at executive stock sales.The treasurer of a mega-cap tech company told peers at a recent NeuGroup meeting that he’s been hearing more “noise with regards to the SEC tightening up controls around repurchase windows” from the company’s legal team. He added, “We’re going to keep a close eye on it. We may tighten up our rules.” The very same day—Sept. 9—SEC Chairman Gary Gensler thanked…
Capital MarketsCash InvestmentsCrypto
September 9, 2021

Hunting for Yield With Crypto-based Lending Amid Regulatory Fog

Corporates seeking better returns on cash by lending crypto weigh falling rates and regulatory uncertainty.News this week that the SEC is investigating Coinbase Global over a lending program and may sue the company could have a chilling effect on corporates that were considering buying and then lending cryptocurrency to pick up yield. But the fact remains that corporate treasuries have been challenged for years to find investments in which to park cash that provide attractive, positive returns.And a small but increasing…
Capital MarketsD&IESG
August 5, 2021

A Pioneer Plugs Into Energy Sector Sustainability-Linked Financing

Enbridge, the pipeline operator, is the first midstream firm in North America to do sustainability-linked financing. Presenting to members of NeuGroup for Oil & Gas Treasury (sponsored by Societe Generale), Sheldon Bueckert, director of treasury at Enbridge, shared his experience helping lead the company’s sustainability-linked bond (SLB) and loan financings, a first for a midstream firm in North America. The session focused on a SLB that Enbridge issued in late June.Key SLB details. On June 23, 2021, Enbridge hosted 131 investors…
BankingCapital MarketsFX
July 22, 2021

Ripple Effects: Gauging Inflation’s Impact on US Rates and Economy

Despite increasing inflation, interest rates should remain low until late 2023, UMB bank tells assistant treasurers. Economic growth turned negative at the start of the pandemic but is rebounding strongly as the United States advances through what some call the Great Rotation—major changes that Eric Kelley, executive VP and director of research and fixed income for UMB Bank, said should result in a strong reopening over the next 12 to 24 months. UMB Bank is a large regional bank serving mainly…
Capital MarketsESG
July 15, 2021

Taking Smaller ESG Steps, Bypassing the Green Bond Road (for Now)

Options in the ESG financing field range from CP to credit facilities, money-market funds and time deposits. Not quite ready to issue ESG bonds? Nearly half the assistant treasurers (ATs) in the projects and priorities session of a recent meeting of NeuGroup for Large-Cap Assistant Treasurers cited ESG as a top priority. However, most said their companies were not quite ready to issue an ESG-based bond and expressed interest in various ESG alternatives. Issuing an ESG bond requires significant legwork and…
Capital MarketsRisk Management
June 17, 2021

How to Float the Interest Rate Boat When Fixed Rates Are So Low

Treasury teams making the case for floating-rate debt see commercial paper as a flexible tool to gain exposure. One of corporate treasury’s perennial challenges is determining the best ratio of fixed- to floating-rate debt, and that conundrum has been heightened by factors including record low interest rates and the significant debt companies took on last year. An assistant treasurer in a recent NeuGroup Assistant Treasurers’ Leadership Group (ATLG) meeting noted that efficient-frontier analysis suggests companies should hold a minimum 30% to…
Capital MarketsCash & Working Capital
June 15, 2021

Convertibles, Speed and Capital Structure: A Tech Banker’s Take

An interview with Lucia Greenblatt, managing director of technology banking at MUFG, on a SAAS company’s financing journey. The optimal capital structure for a high-growth technology company may change significantly as its business develops and its financing options increase—one reason corporates that issue convertible bonds early in their trajectory often replace them with alternatives more suited to mature businesses with investment-grade (IG) credit metrics or ratings That takeaway sprang from a session at a recent meeting of NeuGroup for Growth-Tech…
Capital AllocationCapital Markets
May 20, 2021

Back in Fashion, Buybacks Have Corporates Scoping Capital Structure

Many corporates are deciding whether to restart share repurchase plans suspended in 2020.After the pandemic hit, the volume of share repurchases plummeted and what continued was mainly executed by companies managing the top-20 programs in terms of volume, Societe Generale bankers told assistant treasurers at a recent NeuGroup meeting sponsored by the bank. Dividend payouts, meanwhile, stayed relatively steady and were only cut or canceled as a last resort, Societe Generale said (see chart). An increasing number of companies have…
BankingCapital MarketsCOVID-19
May 20, 2021

Bounce Back: Bank Loan Market Quickly Sees ‘Amazing Recovery’ 

U.S. Bank describes the speedy recovery of revolving credit facility issuance.Talk about a rebound: In the depths of the Covid-19 pandemic, the value of bank loan facilities put in place by corporates tanked by more than 50% to about $200 billion. In the first quarter, it topped $500 billion, above the level reached a year prior (see chart), due in part to plummeting pricing. This was among the key insights from a loan market update by Jeff Stuart, EVP and…
Capital MarketsD&I
April 29, 2021

Gaining Ground on the Road to Diversity in Capital Markets Deals

NeuGroup members discuss details of including firms owned by minorities and women in debt and other transactions.Talk about timing. Members of NeuGroup for Capital Markets discussed diversity and inclusion (D&I) in capital markets transactions on the same day 11 firms owned by women, minorities and veterans joined Deutsche Bank Securities in closing a $750 million bond underwriting for the bank. The role of the 11 firms—which received about 60% of the fees—underscores the momentum of the movement among banks and corporates to…