August 05, 2010
Better Access to Capital Continues
More time for cash forecasting, reporting
When members of the Treasurers’ Group of Thirty met in March 2010, credit had begun to flow again and members were able to start thinking of other aspects of running treasury. Key areas of discussion included:
1) Funding markets. Meeting sponsor HSBC led a discussion of funding markets, touching on how capital and bank credit markets continued to improve.
Key Takeaway: Capital markets are back to as-good-as-it-can-get status, but bank credit markets could still improve for those who can wait.
2) Counterparty Risk Management. Sustained, greater attention to counterparty risk remains a reality for T30 members.
Key Takeaway: Treasurers should consider the need for credit support on derivatives transactions and inevitability—it’s a when, not an if to implement solutions for collateral and margining management.
3) Cash Forecasting and Working Capital. Improvements are still to be had, though each round of efficiency becomes more difficult.
Key Takeaway: Most companies will soon have exhausted the gains to be made without investments in new systems and the processes they enable.
4) Board-Level Reporting. Board-level reporting on treasury metrics continues to be a priority for most members.
Key Takeaway: Even a modicum standardization or accepted practice on what and how much information boards should receive would be beneficial.
Sponsored by: