December 10, 2019

Back to the Future: Making Banks a Source for Innovative Solutions Again

Founder’s Edition, by Joseph Neu Working to reverse the notion that banks are no longer a source for innovative solutions. One of the trends we’ve seen in interacting with NeuGroup members recently is their concern that banks are no longer the source for innovation or solutions that tap the most innovative technology and digital thinking. And banks seem to be hearing this message, prompting them to respond to counter that perception. Unfortunately, some banks find it easier to respond with…
Capital MarketsUncategorized
December 5, 2019

No More Libor-SOFR 101, Please! Treasurers Want Implementation Details

Treasurers say they need specifics on market conventions to complete the SOFR risk puzzle. Many treasury teams don’t want any more bank presentations on Libor-SOFR transition timelines or the basics of risk and fallback language—they want details from bankers, regulators and industry groups on various market conventions. These include how exactly SOFR term rates will be calculated in the cash markets, specifics on any compounding methodology, settlement conventions like lookbacks, and the spread adjustment from Libor to SOFR.“We need details about the market…
Treasury ManagementUncategorized
December 5, 2019

When Treasury Needs to Blow Its Own Horn

How metrics help treasury teams market their successes in good times. Treasury teams get plenty of attention in financially volatile times, but in the good times their more mundane if still critical activities—reducing bank accounts, hedging foreign exchange, etc.—tend to go unnoticed. “If we don’t convey the value treasury provides in good times and in bad, no one else will,” said Ed Scott, senior executive advisor at NeuGroup and former treasurer at Caterpillar, who co-led a recent NeuGroup meeting of…
Treasury ManagementUncategorized
December 3, 2019

Five Key Steps to Supporting Strategic CFOs

Founder’s Edition, by Joseph Neu What direct reports can do to help a CFO—and themselves—climb the strategic stairs. We recently facilitated an event for growth-company CFOs where a lot of discussion centered on how the CFO should help get things done by being a strategic partner of the founder or CEO. Playing this role has also become a priority at more mature companies. Bottom line:  If you report to the CFO, you’ll want help make that person a true strategic partner—as you simultaneously…
Capital MarketsInvestment ManagementUncategorized
November 29, 2019

Prepare for a Surging Green Wave of ESG Products

By Joseph Neu BNP Paribas highlights a veritable tsunami of sustainability-linked finance products.   “Treasurers should be preparing for a tsunami of sustainability-linked finance products,” one NeuGroup member treasurer told me recently in response to market events of the last year. To underscore the importance of that notion, Hervé Duteil, chief sustainability officer for BNP Paribas in the Americas, presented his view to NeuGroup’s Tech20 Treasurers’ Peer Group last month. He described three big waves, or “revolutions,” in sustainable finance:…
November 29, 2019

ION Treasury’s Cross-Product Solutions Strategy Reassures Some TMS Clients

By Antony Michels Company is highlighting innovations that work for all seven of ION’s treasury management systems. In the latest example of its cross-product, multi-brand strategy, this month ION Treasury is launching a cash forecasting solution powered by machine learning for its Reval and ITS treasury clients. ION says the strategy is to build solutions like this once and deploy them to all of its treasury brands, including Wallstreet Suite, Treasura, IT2, Openlink and City Financials. Cross-product solutions. The cash…
Accounting & DisclosureUncategorized
November 29, 2019

Cloud Accounting May Require New Controls, Impact Covenants

Treasury executives whose companies are relying more and more on cloud services should confer with their accountants about new requirements that potentially could impact loan covenants as well as operational elements tangentially affecting treasury. Companies are increasingly choosing treasury management systems (TMSs) and other applications via the cloud rather than installing the software in their own data centers. The Financial Accounting Standards Board’s (FASB) new accounting standard aims make the accounting between the two approaches more similar by requiring companies…
Treasury ManagementUncategorized
November 27, 2019

The Value of Treasury Finance to Growth Company

Founder’s Edition, by Joseph Neu When venture capital isn’t enough, you need a treasurer. Growth companies looking to disrupt industries outside software and pure internet plays (which are already mostly disrupted) can have significant capital needs. This is why traditional venture capital needs to be supplemented with new types of investors and innovative ways to access capital markets. Given the cost of equity, pre-IPO, non-investment grade, un-rated companies needing capital have to be creative about debt financing. This puts a new…
Insights NewsletterUncategorized
November 14, 2019

Pushing Responsibility for Risk Gets Results

Sometimes you have to assign risk to reluctant BU leaders to get their attention. Complying with internal audit’s requests isn’t always front and center in terms of business leader priorities. But prompting them to accept responsibility for identified risks can change that.   In a lengthy discussion at a recent meeting of NeuGroup’s Internal Auditors’ Peer Group, members discussed the inadequate funding internal audit (IA) often receives to perform its function as well as the sometimes-low priority business leaders can…