Capital MarketsInvestment Management
December 8, 2022

Cash Investment Managers Watch and Wait for the Fog to Clear

Many NeuGroup members are shortening duration and some are avoiding maturities beyond six months. “This is the most uncertain time I’ve ever seen,” said a representative of Allspring Global Investments at the fall meeting of NeuGroup for Cash Investment 2, aptly capturing the sentiment of many members. Uncertainty and a sense that interest rates will keep rising despite fears of recession are among the reasons many of them are keeping average portfolio duration short amid the extreme inversion of the yield curve.…
Capital MarketsInvestment Management
November 17, 2022

Kicking the Tires: Investing Cash in Working Capital Finance

Supply chain finance offers attractive yields uncorrelated to other assets, but non-IG funds present an obstacle. The search for attractive yields uncorrelated with—and more resilient than—other fixed-income investments led the investment arm of a large, privately-held multinational corporation to a fund that invests globally across trade receivable, payable and inventory finance assets. Representatives from Koch Investments Group and Pemberton Asset Management, a specialist alternative credit manager, discussed the benefits of the working capital finance asset class at a recent NeuGroup session…
BankingInvestment Management
October 13, 2022

Insist and You May Receive: Higher Rates on Bank Deposits

A low overnight deposit rate prompted one company’s treasury to push back and ask for a higher rate. The bank doubled it. Corporates that want to keep some cash in bank deposits as the Fed hikes interest rates but don’t like the rates they’re being offered should consider an inspirational example described by one assistant treasurer who said her treasury team told some of its banks, in essence, “Your rates aren’t good enough.” The AT discussed the approach during a…
Treasury Management
June 30, 2022

The Great Reconsideration: Improving Culture To Improve Retention

While the flexibility provided by remote work is an important factor, the organization’s culture can be the biggest draw. The pandemic triggered a significant shift in employees’ expectations, making finding and retaining talent a top priority for finance executives. Higher employee turnover rates are prompting companies to kick-start new efforts to craft corporate cultures that make people feel welcome and ensure they stay on long-term. It’s not easy. “The labor market is still a challenge, and recruitment is a challenge,” one treasurer…
Capital MarketsInvestment Management
June 16, 2022

Go Short: The Case for Short Duration Credit

One portfolio manager’s investment in ultra-short securities helps shed light on an underrated way to pick up yield. Investment managers prospecting for opportunities to pick up yield as rates rise may find gold in the hills of short duration credit. At a recent meeting of NeuGroup for Cash Investment sponsored by investment management company Lord Abbett, the portfolio manager of a private university with a large endowment shared how he capitalized on rising yields for short-term investments by working with Lord Abbett at the…
Capital AllocationCash & Working Capital
May 12, 2022

A Treasury Mind Shift: Focusing On Operational Cash

Many treasuries have grown complacent about cash levels, but concerns about a recession are triggering a renewed focus on optimizing the management of working capital.The debate about whether the US economy is headed into a recession because of higher interest rates and the Fed reducing its balance sheet is heating up. While some economists are bullish, many corporate treasuries are not: In a poll last week, 71% of members of NeuGroup for Global Cash and Banking said a recession is…
Capital MarketsCash InvestmentsCompliance
December 8, 2021

Pain You Can Manage and Pain You Can’t: Separately Managed Accounts

SMAs mean accepting KYC and legal dept. pain, but clear communication can save plenty of heartache with managers. Members joined forces for a panel discussion on the pain points associated with setting up, maintaining and reporting for separately managed accounts (SMAs) at a recent meeting of NeuGroup for Cash Investment. Not surprisingly, the most painful parts are the know-your-customer (KYC) obligations and the legal agreement tug-of-war needed for account setup. The encouraging, somewhat unexpected takeaway: Effective communication and a strong relationship…
ESGInvestment Management
August 19, 2021

Leaning into ESG: How a Portfolio ‘Tilt’ Can Pay Off

State Street experts recommend how to optimize an investment portfolio for both ESG and credit quality. It’s a complicated world of ESG scores and standards, especially when managing an investment portfolio. At top of mind for NeuGroup members putting corporate cash to work: should they prioritize ESG performance or maximize returns? Hint: it’s not too much to ask for both. At a recent meeting of NeuGroup for Cash Investment 2, Will Goldthwait and Karyn Corridan, ESG investment experts from State Street Global…
COVID-19Treasury Management
June 24, 2021

Hot Desks, Hybrids and Introverts: Managing Post-Pandemic Work 

Takeaways on talent management as 100% remote work gives way to hybrid models and new hiring challenges.The transition from completely remote work to whatever comes next—back to the office, work at home, a bit of both—is in full swing across companies in the NeuGroup Network. The topic is generating lots of interest at meetings as finance teams plot a course for post-pandemic work that will in many cases be unlike what work life resembled pre-pandemic.NeuGroup founder and CEO Joseph Neu…
CryptoInvestment ManagementTechnology
June 17, 2021

All Aboard? The Crypto Train Has Left the Station

Finance teams need to look beyond Bitcoin to broader opportunities offered by blockchain technology and digital assets. Don’t let all noise blaring from bitcoin drown out the broader implications of blockchain technology and the need for finance teams to understand the potential opportunities offered by cryptocurrency and other digital assets including tokenized securities. That bottom-line takeaway emerged at a recent meeting of NeuGroup for Cash Investment 2 sponsored by State Street, where representatives from Deloitte as well as cryptocurrency fintechs Lukka…