This week’s International Treasurer editorial meeting brought forth a few items for further (or continued) exploration, including more outcries over potential changes to the money-market funds market. Also we’ll take a look at what’s on the minds of Asia treasurers as The NeuGroup gears up for its October meeting of the Asia Treasurers’ Peer Group.
MMF hue and cry. The machinations in the money market fund world continue to grab headlines. More recently, group of mayors, including those from nine big US cities, came out on Monday against additional rules for money market mutual funds. Echoing some of the objections raised by many stakeholders, including corporations and other short-term borrowers, the mayors argued in a letter to the SEC that the changes would disrupt the market, driving up borrowing costs and pushing investors away from a popular savings vehicle; the rules would also discourage corporate, municipal, and individual investors from use them.
Just like treasurers, cities rely on MMFs as vehicles to park their short-term cash.
Also, in another letter, the Investment Company Institute, the Financial Services Institute, the Securities Industry and Financial Markets Association, the American Society of Pension Professional & Actuaries, the National Association of Insurance and Financial Advisors and the US Chamber of Commerce all wrote to voice their concerns about the new rules.
The SEC is set to vote on a host of new rules on August 29, among them a floating net asset value structure for MMFs vs. the fixed NAV (the buck) currently used. While many feel the new restrictions are a done deal, there is a possibility that the measures won’t pass in the desired form. That’s because three SEC commissioners have expressed doubts about them.
ATPG agenda build. The NeuGroup’s Asia Treasurers’ Peer Group is setting its agenda for its fall meeting, October 10-11, 2012. Among the topics discussed so far are explorations of counterparty risk and “employee acquisition management,” which will include discussions on how to attract, manage and retain employees in “hot” business areas like South and East Asia. Also, like their US and European counterparts, Asia treasurers are learning the old “do more with less” routine, particularly as it relates to headcount. Another topic of discussion is expanding treasury’s role to support the rest of the business – customer financing, supply chain finance as well as lending its knowledge about capital and cash management.