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Ted Howard

BankingCash & Working CapitalNGI
February 27, 2020

A Treasurer Grows Frustrated with a Top US Lender and Takes It down a Notch

Seeking a bigger return on its capital as rules tighten, the bank wanted a larger share of wallet. One of the largest US commercial lenders is aggressively seeking more return—share of wallet—for the credit it provides corporates, prompting at least one borrower to say “enough” and downgrade the bank’s rank in its loan syndicate. That takeaway emerged at a recent NeuGroup meeting where members exchanged insights about syndicated loan market trends and discussed which banks are eager to extend credit…
Ted Howard
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NeuGroup News
February 24, 2020

NeuGroup for Healthcare Services Treasury Launching in June

Healthcare is one of the most dominant issues of our time and ripe for disruption, so what are treasurers in the sector doing about it? The NeuGroup for Healthcare Services Treasury is looking for treasury and finance leaders at established healthcare services companies, as well as new entrants looking to change the space, who are seeking to finance and support their businesses through the coming transformation of the sector. Ultimately, we want to help you share and learn for mutual…
Ted Howard
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Cash & Working CapitalNGI
February 18, 2020

Negative-Rate Concerns Spreading to Pension Funds

US MNCs with European pension funds are being forced to contend with negative rates in Europe. Although the likelihood of negative interest rates in the US still seems remote, in Europe they’ve been a reality for several years, and pension funds are now grappling with what that means.  In a recent NeuGroup meeting, the head of pension investments at a multinational corporation (MNC) with several European funds noted that for the first time the company will have to use negative interest rates to value liabilities, specifically…
Ted Howard
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Insurance
February 18, 2020

For Property & Casualty: Look Past the First Tier

If you’re not getting the premium reductions your’e looking for, shop around and check out low-cost brokers. When thinking about top-tier insurance brokers for corporates the usual suspects come to mind: Hub International, Marsh & McLennan Cos., Willis Towers Watson, Aon PLC and the like. But after a quick look beyond that upper slot, one comes across unfamiliar names. Take for instance a broker called Oswald Companies. Not a well-recognized insurance broker among treasurers attending a recent NeuGroup meeting, the…
Ted Howard
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Risk ManagementTechnology
February 6, 2020

Tales from the Cyber Crypt

Assistant treasurers exchange recent scary cyber tales of success and failure. In a breakout session at NeuGroup’s Assistant Treasurers’ Leadership Group focusing on securing companies from cyberattacks, members recounted recent experiences and the conundrums they face combating them. Digital protection, à la carte. NeuGroup’s own Scott Flieger, director of peer groups, said a fellow member of a college board who runs a cybersecurity advisory firm recommends companies make a menu of their digital assets, from bank accounts onward, and seek…
Ted Howard
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Risk ManagementTreasury Management
February 6, 2020

Crisis Management Brings Executives Together

Having a crisis response plan can help make the company more resilient now and later. Following a framework for crisis response planning that engages management as well as the board can create significant political capital for internal audit, not to mention better prepare the company for crises that may arise. Multipurpose framework. The head of internal audit at a major government contractor said in a recent NeuGroup meeting that his company uses the National Fire Protection Association 1600 Standard on…
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Risk ManagementTreasury Management
January 30, 2020

Managing FX in Currency Tiers to Control Cost, Workload

Why one company’s treasury spreads currency management among teams for large exposures, currency clusters and “tier two” currencies. At a recent NeuGroup meeting of treasurers in Europe, one member shared how his company manages FX risk management-related costs and workload by considering currencies in tiers. Global policy, local execution. Generally speaking, at this company, corporate treasury at HQ is responsible for the framework and policies and the global hedging approach, but local (in-country) treasury staff implement the hedging strategy with…
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TechnologyTreasury Management
January 23, 2020

Do You Need Outside Help for TMS Implementation? Maybe

Consultants can help TMS implementations, but practitioners retain some skepticism. Implementing treasury management systems (TMS) is an arduous and complicated task that can benefit significantly from outside expertise but maintaining a skeptical eye can optimize the outcome. ATLG members who had implemented TMSs expressed horror at the notion of returning to Excel spreadsheets. Nevertheless, TMS vendor consolidation and other factors have worsened already sketchy vendor support services, increasing the need for outside help and expertise. The peer group of assistant…
Ted Howard
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Capital AllocationInsights NewsletterInvestment Management
January 21, 2020

What Would an AI-Driven Capital Allocation Look Like?

Founder’s Edition, by Joseph Neu Perennial discussions of capital allocation tend to end up in essentially the same place.My friend Tom Joyce at Deutsche Bank circulated the chart below last week in his “Chart of the Day” email. This one caught my eye because it shows how corporate uses of capital, at least at the S&P 500-company level, are pretty consistent year to year. M&A and Buybacks. Tom calls out the changes: “During the current M&A upcycle, which began in late…
Ted Howard
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Treasury Management
January 10, 2020

Making Better Use of Data to Manage Risk

Cognitive risk sensing identifying and mitigating risk into dynamic process. Cognitive risk sensing (CRS) is said to be the next frontier in terms of analyzing risk and addressing it in a dynamic fashion. But the approach, which should be especially helpful for internal audit (IA) and other risk functions, is still in its infancy for most organizations. Neil White, risk and financial advisory principal and global internal audit analytics leader at Deloitte, said organizations have used structured data from areas…
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