January 31, 2024

Dollar-Denominated Bonds in Argentina Draw Corporate Interest

USD-denominated Bopreal bonds offer a way for subsidiaries in Argentina to pay debts owed to US-based parents. The Argentine subsidiaries of some NeuGroup member multinationals are buying so-called Bopreal bonds that Argentina started selling late last year to help importers pay off debt—including money subsidiaries owe parent companies. The bonds are providing relief to corporates with cash trapped in a country with strict capital controls, hyperinflation and a heavily devalued currency. Bopreals are dollar-denominated but can be purchased with Argentine pesos at the country’s…
January 24, 2024

Speeding Ahead: How EY Fueled a Six-Month TMS Takeoff

Working with EY, one corporate went from the RFP stage to actively making FX hedge trades in half a year. When one employee responsible for a corporate global order-to-cash process was tasked with upgrading to a new TMS—during a company-wide S/4HANA implementation—she knew she was in for a long and bumpy ride. But with the help of EY, the company was using the TMS for hedging in less than a year, with more functionality still to come. In a recent…
January 17, 2024

How SAP Helped Clean Up a Messy, Fragmented Treasury Landscape

Using SAP’s FX risk solutions across its hedging portfolios is paying off for one company where SAP is the sole ERP. Adopting SAP’s risk management solution to manage FX risk has allowed the treasury team at one NeuGroup member company to reduce manual tasks, use real-time data to increase agility and enhance data analytics, optimize its hedging programs and save money by retiring non-integrated, third-party treasury applications. At a recent meeting of NeuGroup for Foreign Exchange, the company’s senior financial risk…
Capital MarketsFX
January 10, 2024

Designing a Net Investment Hedging Program That Makes Sense

How one NeuGroup member company tackled hedging net investments denominated in foreign currencies.The process of preparing to launch a net investment hedging (NIH) program to manage risk requires assessing necessity and exposure, a determination of hedge accounting capacity, deciding between instrument alternatives, and early, effective communication between treasury, tax, outside auditors and other stakeholders. Those insights emerged from a member presentation at the fall meeting of NeuGroup for Mega-Cap Assistant Treasurers. The NIH process followed by the presenting member’s company may…
November 2, 2023

Currency Headache in Argentina: Chilling Effects of FX Controls

A new regulation makes some blue-chip swaps, used to move trapped cash out of the country, less attractive. In the run-up to Argentina’s Oct. 22 general elections, the government body that regulates markets issued an official bulletin that has effectively limited outflows of Argentine pesos (ARS). In recent NeuGroup meetings, corporates and regional experts said the regulation increased the perceived legal risk of blue-chip swaps, a type of international asset trade where a multinational in Argentina typically uses local currency to buy sovereign…
FXTalking Shop
November 2, 2023

Talking Shop: The Pros and Cons for FX of More Frequent Netting

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]. Context: The gross magnitude of inter- and intracompany payables and receivables at multinational companies has made intercompany netting processes essential for efficient global cash operations. With proper setup, an effective netting program will reduce foreign exchange and payment costs, simplify transaction and reconciliation processes and optimize cash concentration. Similarly, the practice of centralizing the buying…
October 11, 2023

Why FX Algos May Belong in a Risk Manager’s Trading Toolbox

Some NeuGroup members are using algos to reduce trading costs and take advantage of aggregated liquidity in the FX spot market. FX algos offer corporate risk managers a well-established technology tool that can, ideally, lower trading costs while increasing speed and efficiency without moving the market when the need to trade falls outside the window of optimal liquidity in the forex market. Algos allow managers to define specific trading rules based on timing, price or quantity to determine trade execution…
Cash & Working CapitalFXTechnology
September 27, 2023

Machine Learning Wizardry: Analytics-Based Cash-Type Forecasting

Data science “wizards” and clean, treasury-tagged cash transaction data are transforming cash forecasting at one corporate. Transaction tagging, data science “wizards,” statistical models and machine learning (ML) are the current cornerstones of an ambitious, yearslong project by treasury at one NeuGroup member company to transform cash forecasting—which now includes grouping cash transactions by type. The FX leader and a member of his team shared details of the project, some of its successes and what they have learned along the way…
FXTechnologyThe NeuGroup Insights Interview
September 12, 2023

One Man’s Goal: Leveling the Playing Field for FX Trades

Just Technologies CEO Anders Bakke wants to give corporates pricing data that lets them negotiate better with banks. In the newest episode of NeuGroup’s Strategic Finance Lab podcast, NeuGroup founder and CEO Joseph Neu talks with a man on a mission to bring more pricing transparency to corporate treasury teams that trade in the foreign exchange market. His name is Anders Nicolai Bakke, a serial entrepreneur who is the CEO and founder of Just Technologies, or Just for short. The…
FXTalking ShopTechnology
September 7, 2023

Talking Shop: FX Dashboards Made With Tableau or Power BI

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]. Context: FX dashboards are an extremely useful tool for treasury teams managing currency risk and shaping the narrative delivered to C-Suite executives about treasury’s ability to hedge the impact of FX rate swings. Well-designed dashboards—some using real-time data—allow risk managers to monitor exposures and dynamically illustrate cash flow, balance sheet and other important areas affected by FX…