Capital Markets & Investments

Refinancing your credit facility is a significant decision for any company. Among the factors driving the discussion, pending maturity dates and changing interest rates top the list. What else? What are the considerations beyond these two standards that matter to CFOs, treasurers and cash management professionals? And how does the process unfold? Find out as Hunton & Williams Partner Kim MacLeod moderates a panel comprised of Cameron Warner, treasurer of NewMarket Corporation and Jay Droogan, managing director (Originations) at JP Morgan Chase Bank, designed to provide an insider’s view on how companies approach the refinancing process and the insights a trusted banking partner should provide.

In a rising rate environment, downside protection becomes paramount and a portfolio that produces smooth and steady cashflows can help stabilize portfolio performance. Discover strategies for constructing broadly diversified, corporate cash portfolios with liquid, highly rated securities that generate attractive yields in this session. Presented by a corporate practitioner, a fixed income portfolio manager and treasury consultant, we cover a broad universe of investments for short-duration portfolios including corporate debt and asset-backed securities. Strategies for minimizing interest rate risk and improving diversification without sacrificing credit quality are discussed, as well as strategies for managing cash funds in-house, hiring external managers and implementing an IPS protect liquidity, preserving capital and navigating the new interest rate landscape.

For years, cash managers “enjoyed” steady short-term bond markets, but the landscape has shifted. With rising rates and increased yields, suddenly the unrealized losses are increasing, and the impact of elevated cash balances on EPS has caught the CFO’s attention. To balance the portfolio, and capture higher yields, alternative strategies should be implemented. This sessions examines available portfolio construction tactics as well as those utilized at Garmin to successfully position their portfolio to benefit from recent rate increases and volatility.

In the United States, investors had to deal with Money Market Fund reform in 2016 and now it’s Europe’s turn. With the January 2019 implementation deadline rapidly approaching, this expert panel explains the EU regulatory changes, the anticipated impact on offshore money market fund industry, and the strategies corporate investors are considering as a result. By understanding the scope of these reforms and how they differ from those implemented in the US, global investors can anticipate and be prepared for the changing liquidity investment landscape.

Join this discussion on the disruptive nature and impact of market and technological forces affecting cash and liquidity management markets today. Discussion focuses on balance sheet impacts and cash deployment strategies following global disruptions from regulatory and legislative changes; including corporate tax reform, Brexit, and EU Money Market Fund Reform. The panel shares experiences on how corporations have reformulated their approach using technology in order to monitor and make decisions about risk management, cash segmentation and product solutions in a changing environment.

Negotiating debt agreements, the primary skill of the treasury professional is multi-faceted and requires a clear understanding of the objectives of companies of various investment grades, and determining if or what outside resources, can be helpful in negotiating. This expert panel clarifies the process, demonstrating how to use a deal document to track progress and compare against existing agreements; investigate different types of default risks and how to write covenants that reduce those risks through appropriate working, defined terms, knowledge, notice, grace periods and other deal terms. This session also looks at post-closing negotiations and how to best remedy the consequences of a default.

For many corporate treasury investors, the attractiveness and utility of commercial paper (CP) has increased over the years due to its cost-effectiveness, accessible supply, regulatory flexibility, liquidity and overall short maturity range. These factors, along with potential tax incentives, have not only peaked interest in CP, they’ve added to the already complicated cash investment landscape facing corporate treasury investors. Join panelists from Carnegie Mellon University, Toyota Financial Services and Applied Materials as they share their experiences evaluating the CP market and implementing a CP program at their organization. Panelists also review the types of firms issuing and purchasing CP, and discuss the roles of dealers and investment managers.

It’s no secret: Interest rates are rising due to actions taken by the Federal Reserve. While this could mean higher yields, it may also generate unrealized losses on fixed income investments. Shorter duration investments typically help preserve principal, but what investment strategies, security types and credit quality ratings work best in a rising rate environment? Alternatively, how do you maintain flexibility to position a portfolio should the Fed change course, and rates do not rise? The CIO of a major fixed income asset manager, a corporate treasury practitioner, and a corporate cash investment consultant share their perspectives based on many years of investment experience under different market environments.

The OECD / G20 - BEPS regulation deals with policies that exploit disparities in tax rules that artificially shift profits to low or no-tax locations. Non-compliance causes serious penalties, and thus, multinational companies must adapt and streamline their intercompany financing activities. BEPS requires companies to price their intercompany finance transactions ‘at arm’s length’. To prove that these transactions are consistently priced, Corporate Treasurers and Tax Directors need to clarify their rationale for structuring their intercompany finance transactions by: 1. Analyzing subsidiary’s balance sheet and P&L statement 2. Determining stand-alone subsidiary credit rating 3. Applying qualitative and/or group support adjustments 4. Looking up credit spread to set arm’s length price Learn how to implement a consistent approach to determine a fair and competitive interest rate for transactions such as intercompany loans, credit facilities, guarantees, cash pooling and leases.

The OECD / G20 - BEPS regulation deals with policies that exploit disparities in tax rules that artificially shift profits to low or no-tax locations. Non-compliance causes serious penalties, and thus, multinational companies must adapt and streamline their intercompany financing activities. BEPS requires companies to price their intercompany finance transactions ‘at arm’s length’. To prove that these transactions are consistently priced, Corporate Treasurers and Tax Directors need to clarify their rationale for structuring their intercompany finance transactions by: 1. Analyzing subsidiary’s balance sheet and P&L statement 2. Determining stand-alone subsidiary credit rating 3. Applying qualitative and/or group support adjustments 4. Looking up credit spread to set arm’s length price Learn how to implement a consistent approach to determine a fair and competitive interest rate for transactions such as intercompany loans, credit facilities, guarantees, cash pooling and leases.

You can create better risk-adjusted return outcomes by strategically investing cash assets using a liquidity/core portfolio bifurcation approach. In fact, one surprising result of using this approach is that cash management can be more easily managed at the asset class allocation level, as opposed to the typical security selection focus that adds less value. Join us for thisthis comprehensive session focused on the core portfolio—defined as a 1-5-year maturity fixed income portfolio of supplementary assets that are unlikely to be required to meet obligations over the operating cycle. For most entities, these represent the majority of cash assets. Walk through the strategic asset allocation of core assets, using modern portfolio theory and mean/variance optimization, the result of which is an array of "efficient" portfolios offering the highest return for a given level of risk exposure. Risk tolerance determination, the optimization approach, custom benchmark portfolio selection, and tactical asset allocation are stepped through as well.