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…
Capital MarketsLibor SOFR
January 26, 2023

Time Crunch Facing High-yield Loans Without Fallback Language

As Libor cession approaches, borrowers that have yet to seek refis or amendments may face higher execution costs. Libor will cease to exist on June 30, yet many borrowers in the high-yield loan market have yet to amend or refinance their loans to address the need to switch to a different reference rate. Syndicated loans with the Alternative Reference Rates Committee’s recommended replacement (or “hardwired fallback”) language will be automatically converted to the Secured Overnight Financing Rate (SOFR) on June…
Capital Markets
October 27, 2022

Overexposed to Fixed-Rate Debt, Not Ready to Swap to Floating

Inflation and uncertainty about interest rates leave many corporates waiting to add more floating-rate exposure. Discussions and polling about fixed- to floating-rate debt ratios among corporate issuers at a recent meeting of NeuGroup for Capital Markets sponsored by Deutsche Bank made clear two key points: The overwhelming majority of companies are overly exposed to fixed-rate debt relative to what they consider ideal and what historical data suggests will reduce interest rate expense over the long-term.Volatile financial markets and uncertainty about inflation and…
NeuGroup News
October 17, 2022

NeuGroup for Capital Markets Meet at The Deutsche Bank Center in NYC

An amazing meeting at the Deutsche Bank Center in New York City with a breath-taking view of Central Park to cap off the first day! It was great to be back in person and see members talking to each other at the meeting, on The Deutsche Bank Terrace, and dinner at The Porter House. This was also the inaugural in-person meeting for NeuGroup for Capital Markets. The sessions through the two-day meeting, went from a Capital Markets update by Jeanmarie G. (DB), Jonathan Krissel (DB), to…
Capital MarketsCash & Working Capital
April 14, 2022

The Beauty of CP Attracts Many—but Not All—Corporates

CP’s flexibility and low cost beckon, but liquidity risk is a key reason one member says his company is avoiding it—for now.What’s not to like about commercial paper (CP)? This popular form of unsecured short-term debt used in the capital structures of many companies for working capital and other purposes gives issuers a relatively inexpensive, cost-efficient source of funding. Members at a recent meeting of NeuGroup for Capital Markets sponsored by Wells Fargo agreed that CP also gives them flexibility, relative…
December 6, 2021

Capital Markets Projects & Priorities for 2022

About this meeting Members will discuss their key projects and priorities for 2022 including refinancing and liability management strategies. About this Peer Group NeuGroup for Capital Markets is a NeuGroup cross-industry peer group for treasury and corporate finance professionals from US corporations who are responsible for debt issuance in the investment-grade capital markets. Meeting type Interim meetings are meant for members of the specified peer group. These meetings originated in response to Covid-19 to keep members connected virtually in between…
Capital Markets
December 1, 2021

Using a Framework to Level a Fixed- vs. Floating-Rate Debt Imbalance

The case for having a programmatic, market-agnostic approach to keep floating-rate debt at a desired level.The vast majority (88%) of corporates polled (see below) at a recent NeuGroup for Capital Markets meeting sponsored by Deutsche Bank are above their target percentage of fixed-rate debt relative to floating-rate; but nearly two-thirds (63%) of the companies either don’t plan to make significant changes (42%) to their fixed-to-floating-rate ratio in response to the current market environment, or they aren’t sure about it (21%).…
Capital Markets
November 17, 2021

Cloning and Cleaving: The Successful Execution of a Complex Spin-off 

Capital markets insights from a NeuGroup member’s journey helping spinning off businesses intertwined within the parent.Not all spin-offs are created equal—a lesson brought home powerfully to one NeuGroup member who helped their company successfully navigate a large, complex, nearly two-year spin-off of three product groups that did not formerly exist as stand-alone businesses and were not managed as a group by the parent company. “These products were fully intertwined across every aspect of the business,” they said. So were the systems…
October 29, 2021

Capital Markets Monthly Interim Meeting

About this meeting Members will discuss the key takeaways from the H2 meetings and what action steps should be taken to further member connections on topics of interest. About this Peer Group NeuGroup for Capital Markets is a NeuGroup cross-industry peer group for treasury and corporate finance professionals from US corporations who are responsible for debt issuance in the investment-grade capital markets. Meeting type Interim meetings are meant for members of the specified peer group. These meetings originated in response…
September 17, 2021

Capital Markets H2 2021 Member Meeting

About this meeting Members of the Capital Markets group will gather to discuss a wide variety of topics including the possible increase of corporate issuance in the Euro and Sterling markets, the merits and challenges of accessing non-core currency markets, how companies view variable rate debt including CP, and the outlook for inflation and possible consequences for interest rates and the shape of the yield curve. About this Peer Group NeuGroup for Capital Markets is a NeuGroup cross-industry peer group…