BankingCash InvestmentsTalking Shop
April 13, 2023

Talking Shop: Investment Policies and Counterparty Risk on Cash

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 failures of Silicon Valley Bank, Signature Bank and Credit Suisse dramatically drove home the critical need of corporations to keep close tabs on the credit worthiness of their banking partners. In response to the crisis of confidence, some companies moved money out of smaller, regional institutions into large, global systemically important…
BankingTalking Shop
February 9, 2023

Talking Shop: Do You Pay All Joint Lead Arrangers of Revolvers?

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: “We have three joint leader arrangers (JLAs) for our revolving credit facility and the JLA that drives the revolver renewal gets paid more than the others. “There are some companies with a lot more than three JLAs. If we were to grow the top tier/JLA group, would the market standard be…
Capital MarketsTalking Shop
January 19, 2023

Talking Shop: Determining the Interest Rate on Intercompany Loans

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 am exploring whether doing a ‘mini-credit assessment’ (similar to Moody’s model) is a meaningful exercise and a value-add change to our current policy, which is to treat all subsidiaries as created equal for the purposes of determining our credit rating for intercompany loan borrowing rates (i.e., a few notches below…
FXTalking Shop
January 5, 2023

Talking Shop: Comparing FX Trading Setups

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: “We have started a big FX global project and we would like to discuss other setups where you leverage FXall as a trading platform with full integration to a TMS and payments solution and with a global footprint for trading. “Does anyone have a FX trading desk and systems setup similar…
BankingTalking Shop
December 8, 2022

Talking Shop: Interest Rates for In-House Banks

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 those that use an in-house bank/cash center, can you share the interest rates you use on the excess funds loaned to the in-house bank? “Does the in-house bank/cash center pay the lending entity: “An overnight rate “A monthly interest rate “A rate that matches the rate on the investment made…
FXTalking Shop
December 1, 2022

Talking Shop: Acquisitions in a Foreign Currency

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: “How do you go about making international transactions for acquiring companies traded on an international market with shares in the local currency? “If, for example, the price is $50M USD but you have to purchase shares in GBP or EUR: “Would you do a big one-time trade ($50M USD to…
BankingCash & Working CapitalTalking Shop
November 10, 2022

Talking Shop: How Much Liquidity Does Your Holding Company Maintain?

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: “We are a multibillion-dollar bank and have traditionally held cash and liquid securities to cover four quarters of holding company expenses, including opex, debt, preferred and common dividends. We set the upstream dividend from the bank to the holdco to maintain that level every quarter. “After many years of this practice,…
BankingTalking Shop
November 3, 2022

Talking Shop: Verifying Payment Instructions for Vendors

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: “What does your company do to verify payment instructions for new vendors and changes in instructions for an existing vendor?” Peer answer 1: “Our organization spends a significant amount of time validating changing or new banking information via phone calls. We are in the process of rolling out a service offered through…
ComplianceTalking Shop
September 29, 2022

Talking Shop: Third Parties for SWIFT Attestation Compliance?

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: “Are any of you SWIFT corporate members? If yes, SWIFT requires an independent assessment of controls as part of their security attestation compliance that can be done by internal audit (IA) or a third party. Which third-party vendors do you use?” Peer answer 1: “We are using PwC to perform the independent assessment. We have…
FXTalking Shop
September 15, 2022

Talking Shop, FX Edition: EUR Forwards; Hedging Depreciation

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 1: “Going out to one year for EUR, what size tranches are you trading for EUR forwards? Could I trade $10 million-$20 million? $20 million-$30 million? Peer answer 1: “The one-year EUR forward is pretty liquid, but to keep the spread narrow, we typically keep our size under USD 30 million equivalent…