Cash & Working Capital
September 8, 2022

Getting Religion: Treasury Spreads Reverence of Free Cash Flow

Rigorous control over free cash flow gives treasury a seat at the strategy table. By working to shorten the cash conversion cycle and making free cash flow a key metric of success, treasury at one NeuGroup member company gained credibility, responsibility and authority as a strategic partner within the enterprise. Its experience offers a road map for other corporates where treasury aims to augment its role in working capital management. Companies that succeed in this effort will better weather economic…
CryptoInvestment Management
June 30, 2022

The Inevitability of Crypto for Corporates

While the cryptocurrency market has imploded recently, treasury’s need to become crypto-fluent remains strong. Sharp drops in cryptocurrency value have grabbed headlines and rattled investors. However, the reality for most corporates is that they must continue, and even accelerate, their efforts to understand the market’s mechanisms and dynamics. Companies’ strategic initiatives, such as issuing nonfungible tokens (NFTs), and rising demand for payment in crypto from a younger customer base, are forcing treasuries to come up the crypto learning curve. According…
Capital MarketsRegional
June 2, 2022

The Fed Won’t Derail the Economy, UMB Tells Assistant Treasurers

The bank’s positive forecast addresses concerns about rates, inflation, growth and unknowns ahead. UMB, the regional commercial bank, presented a surprisingly upbeat economic forecast for this year to assistant treasurers in a recent meeting, suggesting less likelihood they will face difficult choices to help guide their companies through a recession or skyrocketing inflation.  “On our side,” said an assistant treasurer attending the meeting of NeuGroup for Large-Cap Assistant Treasurers, “it’s fear of the unknown,” given the Fed failed to foresee the…
Capital MarketsTalking Shop
February 24, 2022

Talking Shop: Disclosing Info to Ratings Agencies Before Earnings

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “Does anyone in the group discuss quarterly earnings with the rating agencies before the press release?”Peer answer 1: “If there is news that we believe they should hear in advance of the earnings announcement, then we do meet with them in advance.”Peer answer 2: “We haven’t been asked to discuss…
Cash & Working CapitalTechnology
February 17, 2022

Accuracy and AI: A New Cash Forecasting Tool Proves Its Worth

HighRadius helps one company with thousands of projects and a complex revenue stream better forecast cash. A new tool to improve cash forecasting can be a tough sell to management, given the intangible returns. It becomes easier, however, if the solution improves accuracy by more than 50%, and even easier if the vendor contractually agrees to achieve a certain level of improvement or discontinue the relationship—no strings attached. “It’s very hard to put a dollar amount on the positive impact of…
Capital MarketsTechnology
September 23, 2021

The Sun Sets for Some on Easy, Shared Access to Bloomberg Terminals

Adjusting to the end of Terminal access via Bloomberg Disaster Recovery amid hybrid work. Many treasury and finance teams that relied on Bloomberg’s Disaster Recovery (DR) services to share access to the company’s powerful Terminals are adapting to the end of their access. It’s a challenge for some teams, given that many employees will continue to work from home part of the week and won’t have access to Terminals in offices.That’s leading more companies to consider replacing physical Terminals with…
BankingCapital MarketsFX
July 22, 2021

Ripple Effects: Gauging Inflation’s Impact on US Rates and Economy

Despite increasing inflation, interest rates should remain low until late 2023, UMB bank tells assistant treasurers. Economic growth turned negative at the start of the pandemic but is rebounding strongly as the United States advances through what some call the Great Rotation—major changes that Eric Kelley, executive VP and director of research and fixed income for UMB Bank, said should result in a strong reopening over the next 12 to 24 months. UMB Bank is a large regional bank serving mainly…
Capital MarketsESG
July 15, 2021

Taking Smaller ESG Steps, Bypassing the Green Bond Road (for Now)

Options in the ESG financing field range from CP to credit facilities, money-market funds and time deposits. Not quite ready to issue ESG bonds? Nearly half the assistant treasurers (ATs) in the projects and priorities session of a recent meeting of NeuGroup for Large-Cap Assistant Treasurers cited ESG as a top priority. However, most said their companies were not quite ready to issue an ESG-based bond and expressed interest in various ESG alternatives. Issuing an ESG bond requires significant legwork and…
CryptoRisk Management
July 1, 2021

In Creeps Crypto

While most companies aren’t directly involved in crypto yet, members expect questions and are looking for answers. In a twist providing insight into an increasingly important issue, assistant treasurers at a recent NeuGroup meeting pointed to a discussion about cryptocurrencies as one of their takeaways while saying digital currencies have not yet had an impact on their treasury departments.   Members of NeuGroup for Large-Cap Assistant Treasurers agreed that corporate higher-ups would almost certainly inquire soon about digital currencies and assets—one…
Capital MarketsRisk Management
June 17, 2021

How to Float the Interest Rate Boat When Fixed Rates Are So Low

Treasury teams making the case for floating-rate debt see commercial paper as a flexible tool to gain exposure. One of corporate treasury’s perennial challenges is determining the best ratio of fixed- to floating-rate debt, and that conundrum has been heightened by factors including record low interest rates and the significant debt companies took on last year. An assistant treasurer in a recent NeuGroup Assistant Treasurers’ Leadership Group (ATLG) meeting noted that efficient-frontier analysis suggests companies should hold a minimum 30% to…