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…
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…
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…
Capital MarketsTreasury Management
May 28, 2020

How Corporates Tapping Capital Markets Use Minority and Diversity Firms

NeuGroup members discuss benefits, challenges and process as treasury promotes diversity and inclusion.  Many treasury teams at multinational corporations strive to include firms owned by women, people of color and disabled veterans when selling debt, buying back stock or issuing commercial paper. At a recent NeuGroup meeting focusing on capital markets, members shared their insights on the process of including minority and diversity firms in various transactions.Formalize the process. The member who kicked off the discussion described her company’s path…
Baseball Middle Innings
NeuGroup News
May 16, 2020

Wells Fargo Securities Sponsors NeuGroup for Capital Markets Pilot Success

With an unprecedented large turnout, NeuGroup launched our Capital Markets group with this week's pilot meeting sponsored by Wells Fargo Securities. A special thank you to them and all the members who shared and validated insights on what we've learned in the middle innings of record capital markets activity.  Scott Flieger, thanks for making this happen! #connectwithneugroup on #capitalmarkets