What’s on International Treasurer’s radar screen.
This week’s editorial discussion brought up several topics, including a wrap-up of the themes and outlooks of the recent EuroFinance conference in Geneva, Switzerland. Also on tap is a continued look what comment letters have to say regarding proposed changes to hedge accounting. Venezuela is issuing another bond, which is always notable as companies usually jump at any chance to get trapped out of that country. HIA 2.0, which is always bubbling below the surface as of late, will also be explored.
Eurofinance
Our intrepid International Treasurer conference correspondents will summarize some of the themes that emerged from the early October EuroFinance meeting, which took place in Geneva, Switzerland. This will likely include and expansion of previously reported subjects like the growing challenge emerging market treasurers face as they begin to go global as well as the pervasive and continued feelings of regulatory uncertainty that prevailed throughout the conference. The growing part China will play in the global economy likely will also be discussed.
Financial Instrument comment letters
After the Financial Accounting Standards Board issued an exposure draft regarding its proposed Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities—Financial Instruments (Topic 825) and Derivatives and Hedging (Topic 815), the organization received over 2,000 letters (see related story here). Of course, few commenters are endorsing the proposals. To get a clearer picture of how the letters stack up, International Treasurer will continue sorting through them to highlight the salient points made.
Venezuela bond
Perhaps looking to ride the coat-tails of Venezuela’s successful government bond auction in August, state oil company Petroleos de Venezuela SA (PDVSA) recently announced it would offer $3bn in corporate bonds. Proceeds will reportedly be used to help finance the company’s investment plan as well as government housing projects. Early intelligence on the issue, which will go to bid on Friday, said many companies will be looking to bid in the $5mn to $10mn range. Many companies were successful bidding more than that in the August offering, so may sit out this round.
HIA 2.0
While the Obama administration continues its efforts to create US jobs by hectoring and closing what it calls corporate tax loopholes “that encourage companies to outsource workers,” there remains another push by corporations and even a prominent former labor leader (see related story here) to bring back the Homeland Investment Act, aka HIA 2.0, to spur job growth now. US MNCs reportedly have more than a trillion dollars in earnings overseas, basically trapped there because bringing it back would trigger a hefty tax.