Capital markets Archives - NeuGroup

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…

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 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…