Category

Investment Management

Cash & Working CapitalInvestment Management
September 25, 2024

Cash Investment Managers Mull Duration Changes After Rate Cut

A sampling of sentiments about short-term cash investments as yields respond to Fed rate cut. The Federal Reserve’s 50-basis-point rate cut last week is generating plenty of buzz among treasury teams responsible for investing excess cash who have made the most of short-term rates topping 5% following years of yields near zero. The beginning of rate cuts raises the question for some cash investment managers of when to start extending duration. More context: After the Fed started raising rates in…
Justin Jones
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Investment ManagementTechnologyUncategorized
June 26, 2024

Freeing the Potential of Data: The Right People and Technology

HSBC dives into unleashing the power of data, emphasizing the need for the right tools and individuals who know how to use them. Corporate treasury teams are increasingly embracing data, but not everyone has the technology and analytic skills to draw insights from oceans of info. Some members are embracing the idea that it’s easier to teach finance to employees with tech expertise than teaching treasury teams high-level computer programming—a concept that drove a number of conversations at a recent…
Justin Jones
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Investment Management
May 22, 2024

Do-It-Yourself: An In-House Investment Management Success Story

Reducing SMA assets and DIY cash investing helps one corporate save money while boosting returns and efficiency. Establishing an in-house investment management operation that reduces fees paid to external asset managers and gives treasury more responsibility and flexibility in investing cash may not be common outside of mega-cap, cash-rich tech companies. But the numerous benefits it brings are definitely within reach of at least some smaller companies. That was among the key takeaways from a presentation by a member of NeuGroup…
Justin Jones
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Capital MarketsInvestment Management
October 19, 2023

Reverse Repo: A Safe Haven for Cash Amid Financial Turbulence

Attractive yields and safety are two reasons some corporates are investing directly in reverse repos. Turmoil in the banking sector earlier this year sent shockwaves through corporate treasuries, triggering widespread reviews of credit risk policies and changes in how cash investment managers think about counterparty limits for unsecured exposure to banks. As these managers continue to seek both safety and healthy yields, reverse repurchase agreements, also known as reverse repos, are drawing increased attention globally. And no wonder: they offer corporates an additional layer…
Justin Jones
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Cash & Working CapitalInvestment Management
September 7, 2023

Collaboration with Treasury as Key to Improving Working Capital

Breaking down silos between treasury, AP and procurement to optimize invoice processing and strategic liquidity management. With interest rates likely to remain higher for longer, opportunistic treasury teams want to invest excess cash where it can earn attractive yields. One obstacle standing in the way at some companies stems from differing priorities between accounts payable (AP), which often aims to pay invoices as soon as possible, and treasury, which has a more strategic view of liquidity. At a recent session of NeuGroup…
Justin Jones
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Capital MarketsInvestment Management
August 9, 2023

Gear Shift: Cash Investment Managers Eying Eventual Rate Cuts

With the end of Fed rate hikes in view, some managers are now talking about extending investment duration. When 2023 began, corporate cash investment teams were battening down the hatches, keeping maturities very short in anticipation of more interest rate hikes. Almost eight months later, the discussion has shifted to when the Fed might start cutting rates, leading to a flatter and eventually steeper yield curve, opening the door to extending duration. “Short-term rates may exceed or be more optimal than investing…
Justin Jones
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Investment ManagementTechnology
May 25, 2023

Plugging Into ChatGPT To Improve Qualitative Investment Analysis

A portfolio manager at a forward-thinking tech company seeks an edge by tapping the power of generative AI. Turning the power of generative artificial intelligence (AI) into a competitive edge by using tools including ChatGPT is a top priority of one member of NeuGroup for Cash Investment. He has begun using the technology’s ability to analyze massive amounts of text using natural language processing, with the goal of improving qualitative investment analysis. That sets his company apart: While many finance orgs…
Justin Jones
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D&IInvestment Management
April 6, 2023

Driving Diversity: A Company’s DEI Scorecard for Asset Managers

One corporate uses data on firms’ racial and gender representation relative to the US Census and their peers. A dearth of minority-owned firms that manage fixed-income assets—and a desire to hold all its asset managers accountable on diversity initiatives and metrics—led the treasury team at one NeuGroup member company with a large cash balance to develop a scorecard for diversity, equity and inclusion. The company’s treasurer shared it with peers at a recent meeting of NeuGroup for Mega-Cap Treasurers. The treasury team’s asset…
Justin Jones
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Capital MarketsInvestment Management
February 16, 2023

Strengthening Bonds With Fixed-Income Investors Pays Dividends

A strong commitment to fixed-income investor relations in good times helps one company prepare for rough patches. Say “investor relations” and most people immediately think of equity investors. But not the director of capital markets at a large manufacturer that has more than $100 billion outstanding in unsecured, asset-backed and convertible debt—and who has two team members dedicated solely to fixed-income investor relations (IR). At a fall meeting of NeuGroup for Capital Markets sponsored by Deutsche Bank, the director described his company’s…
Justin Jones
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D&IInvestment Management
February 9, 2023

Investing in Diversity: D&I Performance Metrics in Action

A NeuGroup survey shows treasury prioritizes risk management and performance against a benchmark when evaluating diverse-owned firms.Eighty-six percent of respondents to NeuGroup’s D&I Financing and Asset Management Survey do not have a formal D&I policy, but 54% work within informal guidelines. Regardless of approach, the overall investment policy requires that treasury apply performance metrics when it selects external managers for investment of cash and evaluates their success over time. The survey reveals treasury applies the same performance measures to diverse-owned investment…
Justin Jones
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