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FX

FXTechnology
November 10, 2021

Training for Treasury’s Tech Future With Coding Boot Camps

Treasurers are moving to familiarize their teams with computer programming, some by enlisting members in coding boot camps.A growing number of treasurers are pushing their teams to learn computer programing skills as they seek to improve metrics like forecasting accuracy, gain access to more powerful processing and minimize their dependence on IT teams and third-party solutions. At a recent meeting of NeuGroup for Foreign Exchange 2, members discussed their approaches, from large-scale internal classes to sending team members to online…
Justin Jones
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FXTechnology
November 3, 2021

Google’s Treasury Transformation Search Results: Teaming up With SAP

Google’s co-innovation of treasury solutions that work with SAP S/4HANA could benefit other corporates.Google’s frustrations with building its own customized treasury tools to enhance its ERP ultimately pushed the company to abandon that strategy. Today, it’s using standardized solutions it co-created with SAP that are now built into its cloud-based S/4HANA platform. Among the beneficiaries: other corporates that use S/4HANA that can make use of tools Google helped innovate. Over a two-year implementation of SAP that Google called Project Emerald,…
Justin Jones
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FXTalking Shop
October 28, 2021

Talking Shop: Balance Sheet Hedging and the Efficient Frontier

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “Does anyone use efficient frontier in the balance sheet hedging program, i.e., consider the correlations between the currency pairs to determine the hedge ratio? I would like to learn how that works in practice.” Peer answer 1: “We do an efficient frontier light, I would say. We have different hedge…
Justin Jones
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Cash & Working CapitalFXTechnology
October 21, 2021

Closing Loops: Connecting FX Hedging and Cash Forecasts

How one member uses Cashforce to save time and money on FX trades—and helped create an automated hedging process.One assistant treasurer at a recent NeuGroup virtual interactive session said that her primary project for 2021 is “to make treasury as no-touch as possible.” This is a common theme for treasurers recently, though it’s not always clear where to start. Her first step was to seek potential connections in existing processes and platforms—which led to an overhauled and streamlined process for foreign…
Justin Jones
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FXTalking Shop
October 18, 2021

Talking Shop: Who Outside Treasury Reviews Hedging Strategy?

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “Do other companies review their FX hedge strategy with functions/leadership outside of treasury? “We review FX impact results (underlying + hedge) monthly with the CFO, but we don’t discuss our hedge strategy, which has raised questions on governance.“If you do review your hedge strategy (hedge ratios, currencies, execution approach, instrument…
Justin Jones
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FXRisk ManagementTalking Shop
September 9, 2021

Talking Shop: Measuring Counterparty Exposure on Outstanding Trades

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “For companies that trade derivatives on a non-collateralized basis, how do you measure your exposure to counterparties on outstanding trades (e.g., impact from one standard deviation movement?) and how is this factored into your overall counterparty risk assessment? “We are currently looking to move away from collateral postings on our…
Justin Jones
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FXTalking Shop
August 19, 2021

Talking Shop: Approval Level For Executing Hedging Contracts

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “I know we talked about this at some point this year, but I wanted to see if you all would help me benchmark. What level of approval/review/sign-off is required prior to executing your hedging contracts?” Peer answer 1: “Our treasurer signs off on each monthly tranche of cash flow hedges…
Justin Jones
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FXTalking Shop
August 12, 2021

Talking Shop: Digging Into Dual-Purpose Hedges and De-designation

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “Does anyone have dual-purpose hedges (for example, the hedge is originally a cash flow (CF) hedge and then intentionally de-designated to become a balance sheet hedge, with impact after de-designation going to the P&L)?”Peer answer 1: “Yes, we’ve recently switched to a long haul approach and are now de-designating our…
Justin Jones
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FXRegional
July 29, 2021

RMB vs. USD: Watching Closely as China Builds ‘Parallel Universes’

Standard Chartered advises keeping an eye on China as accelerating use of the RMB helps the nation separate itself from the pack.In a recent meeting of NeuGroup for Tech Treasurers centered around China’s economy, Standard Chartered’s global head of research Eric Robertsen kicked things off with an anecdote. Just over ten years ago, a Congo-based wood supplier had its supply of wood bought out by a Chinese business that paid in USD. Just three years later, Chinese businesses were still…
Justin Jones
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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…
Antony Michels
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