A roundup of topics International Treasurer is investigating.
The NeuGroup’s Treasury Investment Managers’ Peer Group is taking a close look at how to benchmark member portfolios post-crisis. Of course, the question is complicated by the fact of the current low rate environment and the belief that rates will rise, so fixed income investments look dodgy. And any investment that one can make a DCF argument for now needs to be able to survive a higher discount rate, which may be coming soon.
Also on International Treasurer’s agenda is a deep dive into the ramifications of ongoing regulatory proposals on treasury. Not only is the corporate world waiting on the derivatives legislation to pass, so as to understand how to hedge its exposures, there’s enormous uncertainty over taxes, which could sway the decision regarding dividends versus buybacks, and other issues.
Finally, vendors’ use of credit cards for multi-billion-dollar purchases seems pretty odd. But think of all those flight miles and cash back deals! Unfortunately for those tasked with dealing with accounts receivable, such strategies can carve 2-3 percent in terms of interchange fees off the total invoice. There is, however, some hope: buyers and sellers can negotiate these terms head of time, splitting the vig, or buyers can negotiate with card companies to try to reduce the fees. In any case, when hundreds of thousands of dollars are on the line, it makes sense to try.