The recent much publicised cases of fraud and losses in various trading companies in Asia and MENA (e.g. Hin Leong, Agritrade, Phoenix, Hontop Energy and Zenrock) have left a deep mark on the industry. The “usual suspect” group of financing banks (e.g. HSBC, ABN AMRO, Société Générale, Natixis, CACIB, BNP Paribas, ING, MUFG etc.) was seriously impacted with potential losses in some banks going well over USD 100 million. As a direct consequence some leading banks have decided to completely discontinue the coverage of this sector, others have discontinued their activities in certain geographical regions and let their respective teams go. Furthermore, new business has been frozen and thorough reviews are currently being prepared by other leading sector lenders.
Do you have a subsidiary in the United States? Are you monitoring your US cash management costs such as bank charges and electronic transaction fees? It is highly likely that these fees will increase in the near future and that your bills will be impacted. Here’s why.
According to Olivier Talvard, senior director at Redbridge, improving working capital requires careful execution to achieve its goals while simultaneously protecting the client-supplier ecosystem.
Pressure from the sales, marketing, as well as digitization, teams to adopt innovative payment solutions and access multiple card networks must make sense from a financial as well as security standpoint. An interview with our experts Mélina Le Sauze and Anthony Schulhof.
Global TMS providers are stepping up to help treasurers during the COVID-19 pandemic. Here’s how.
French National Bank (FNB) manages the Negotiable European Commercial Paper (NEU CP) crisis by listening to its stakeholders.
Florence Saliba, Chairwoman of the French Treasurer Association (AFTE) and François Gouesnard, Vice-Chairman of the Finance Commission, provide a positive assessment on the FNB’s action aimed at restoring confidence in the NEU CP market – Interview
Put in place by the French Government to offer companies easy access to COVID-19 special financial support, the banks are not entirely comfortable with some of the terms and conditions of the measures. They are exercising their normal due diligence, as they would do with any credit applications. Treasury departments should therefore not spend time thinking about the optimal financing structure in the context of more or less rapid economic recovery.
Europe’s largest companies are staying away from the special financing arrangements put in place by governments . In France, even before the presentation of the state-guaranteed loan (Prêt Garanti par l’Etat – “PGE”), several large caps had already secured additional liquidity to get them through the first few months of the crisis, such as Airbus, which announced the signing of a €15 billion syndicated loan on 23 March. Other such raising included Schlumberger with a €1.5bn Revolving Credit Facility and Diageo, who launched and priced a USD $2.5bn bond offering.
How quickly will companies take advantage of the advances in trade related technology that affords them reductions in costs as well as improvements in risk mitigation?
Humanity is shaped by its crisis. So is trading, as old as humanity as well. In order to survive, trading will continuously have to adapt to demand and supply shocks, logistical challenges, increase in risk premia and last but not least liquidity available. In fact liquidity has always been and will continue to be the number one risk consideration for any trading company.
With the fast-spreading threat of the coronavirus paralyzing the U.S. and global economy for months to come, the Federal Reserve made the drastic decision on March 15, 2020, to slash interest rates to zero.
“We combine artificial intelligence with business skills to revolutionise cash flow forecasting.” Rupert Schiessl, founder of Verteego
Verteego believes that cash flow forecasts should be rethought to improve how companies are managed and increase their profitability.
Redbridge invited three international treasury professionals based in the US, UK and France to share their views on successful cash flow forecasting. In this post, Ferdinand Jahnel, VP, Treasurer at Marsh & McLennan Companies, explains how artificial intelligence (AI) could improve the process of cash forecasting.