September 13, 2011
LatAm On Its Own Two Feet
Respectable Growth Rates in Emerging Market
LatAm treasury practitioners continue to seek ways to eke out efficiencies under imperfect circumstances. Nowhere is that more true than in Brazil. When members of The NeuGroup’s LatAm Treasury Managers’ Peer Group (LATMPG) came together for their meeting in June, in addition to the J.P. Morgan LatAm overview and an update on Venezuela, discussion topics included:
1) Brazil Deep Dive. An overview of the status of member companies’ treasury affairs in Brazil and how to move to the next level.
Key Takeaway: As cash piles grow in Brazil, treasury seeks efficient exit options.
2) Cash and Exposure Forecasting and Tools. Treasurers look at ways to improve the forecasting process.
Key Takeaway: A lot of granularity in the forecast can create noise. When it comes to detail, sometimes less is more.
3) Investment Policies and Options across the Region. A look at what companies are doing with their cash and whether they should be doing anything differently.
Key Takeaway: Cross-border cash pooling is ideal, but due to taxes and regulatory barriers, it’s difficult and uneconomical; instead, optimize local investments.
4) Supply-Chain Finance and Business Models. A look at LatAm preferred terms and supply-chain financing options.
Key Takeaway: Key to the economics of an SCF program is that payables do not get reclassified as debt on the balance sheet.
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