gtnews

Investment Management Articles

• Real-time View: Searching for Value in a Low-rate Environment
  Bob Stark, Kyriba - 24 May 2013 As treasurers increasingly utilise alternative investment and funding options in a prolonged low-rate interest rate environment, good cash flow and financial visibility is becoming ever more important as sound basis point upon which to make informed decisions.
• Coping with a Prolonged Low-interest Rate Environment
  Atul Bhuchar, DBS Bank - Jens Lauschke, DBS Bank - 14 May 2013 Weighing up the return on investment versus the return of investment poses a conundrum for corporate treasurers. This article examines the dilemma of whether to accept credit, liquidity or interest rate risk to earn higher yield in a low-interest rate environment, or to preserve capital.
• Avoiding Collateral Surprises: Managing Multi-Currency CSAs
  Anna Barbashova, Numerix - 24 Jan 2013 This article explores multi-currency credit support annexes (CSAs) in the derivatives area and their potential impact on pricing for treasurers and other financial professionals. Related challenges that practitioners face in terms of collateral management and optimisation is also explored. It highlights why efficient collateral management is fundamental in the new post-crisis world, and identifies why cheapest-to-deliver (CTD) collateral can be necessary for profit, effectiveness and liquidity.
• Trade Finance in Asia: Have Regional Banks Stepped into the Breach?
  Vijay Vashist, DBS Bank - 6 Nov 2012 Trade finance for companies in the emerging markets of Asia is feeling the impact of a move by Western banks to reduce their exposure. This article examines whether regional banks are positioned to compensate for the resulting shortfall.
• High-yield: An Alternative Source of Finance
  Rodolphe Roch, Marlborough Partners - 25 Oct 2012 High-yield (HY) bonds have become a valuable financing tool for larger corporates. This article examines their benefits and outlines the issuance process.
• KfW: Sustainability Policies in Portfolio Management
  Dr Solveig Pape-Hamich, KfW Bankengruppe - Dr Frank Czichowski, KfW Bankengruppe - 31 Jul 2012 Having achieved carbon neutrality in 2006 Germany’s KfW Bankengruppe (KfW) now follows a policy of responsible investment. The policy is outlined in this article as a guide to best practice.
• OTC Hedges Versus Exchange Traded Versus Centrally Cleared
  Gurpreet Banwait, FINCAD - 12 Jul 2012 Derivatives have been used for decades to help manage foreign exchange (FX), interest rate and commodity risk. Many that use them for hedging purposes also comply with hedge accounting standards, thus helping to reduce financial statement volatility. However, for the most part, over-the-counter (OTC) derivatives have been used as hedges that did not need to go on exchange or be centrally cleared. Forthcoming regulations will change this. This article examines how hedging with derivatives could be affected.
• Alternative Financiers Step into the Breach
  Kamel Alzarka, Falcon Group - 17 May 2012 Unable to access bank funding, many corporates are finding themselves without the capital they need to grow. The answer is to find an alternative source.
• As Corporate Treasurers Seek Security and Liquidity, MMFs and Portals Grow in Importance
  Michael Vogel, SunGard Inc - 24 Apr 2012 Some corporations are amassing huge amount of cash, as current economic and regulatory challenges have resulted in a complex cash management environment for businesses globally. Companies that have developed large cash balances often struggle to find a sufficient number of counterparty banks and issuers that meet their credit requirements.
• Revisiting Global Liquidity Management Strategies: Now is the Time
  Amy Goldstein, JP Morgan Chase - 2 Dec 2011 Enhancing or creating a liquidity strategy is a lengthy process, with a variety of tax and legal implications. For that reason, it's important to get started as soon as possible so you're ready to effectively deal with market uncertainties and take advantage of opportunities as they arise.
• Making a Case for Separately Managed Accounts
  Christopher Growney, Clearwater Analytics - 8 Nov 2011 This article argues that building an investment policy, implementing a reporting platform and outsourcing asset management are key to leveraging opportunities.
• Why ISDA Agreements are One-sided
  Scott Bilter, Atlas Risk - Jonathan Tunney, Atlas Risk - 26 Jul 2011 This paper looks at some of the problems associated with over-the-counter (OTC) trading, and specifically how it relates to counterparty risk mitigation.
• Derivatives Reform: Mapping the Road Ahead
  Martin Higgs, State Street Global Services - 26 Jul 2011 Amid the unknowns about the changes ahead, investors can be certain of their scope. Once derivatives trades move to clearing, they will behave much more like exchange-traded instruments. Absorbing the market implications of this shift will require time.
• OTC Derivatives Automation: Playing a Waiting Game?
  David Penney, SmartStream - 22 Jul 2011 To date automation initiatives have created infrastructures to improve confirmations, payment reconciliations and other post-trading functions. However, this has only made a small impact on the issue, as highlighted by the rising number of outstanding confirmations firms faced during the early stages of the credit crunch.
• Securitisation - A Capital Markets Phoenix?
  Avarina Miller, Demica - 18 Jan 2011 The recent financial crisis left many markets dead or mortally wounded. This article examines whether securitisations, a capital markets victim of the crisis, have disappeared, or have appeared from the smoke of disaster in a more robust form.
• Russia Launches Biggest Privatisation Programme Since the 1990s
  Andrey Goltsblat, Goltsblat BLP - 9 Nov 2010 In light of Russia's recently announced extensive asset sale, this article examines opportunities and potential pitfalls this presents for international investors.
• Asset Management in 2010 and Beyond
  Sebastien Roussotte, Sophis - 9 Feb 2010 After a difficult couple of years, how will the Nordic asset management sector develop - particularly in terms of alternative instruments, emerging markets and risk - in 2010?
• Increasing M&A Success Through Integrated Business Planning
  Carlos Centurion, River Logic - 8 Dec 2009 Mergers and acquisitions still routinely fall short of their potential shareholder value owing to inadequate supporting technology and a lack of communication within the organisations concerned. How can firms derive more value from the M&A process?
• The Tide is Turning: Attitudes to Outsourcing Market Data Delivery
  Paul Gow, CJC - 8 Dec 2009 The financial meltdown resulted in a brief wave of M&A activity in the financial services industry. With the potential for further consolidation in the market, financial institutions are evaluating their existing and potential market data infrastructures to avoid integration problems.
• All or Nothing: A New Paradigm in Money Market Trading for Corporates
  Justin Meadows, MyTreasury - 17 Nov 2009 While electronic trading portals for corporate treasurers got off to a slow start in the FX market and have been largely ignored in the money markets beyond MMFs, this situation is rapidly beginning to change.
• Investing in Cash Management for the Long-term
  Thomas Nelson, Wall Street Systems, Inc. - 4 Aug 2009 With tightened credit lines due to the global recession, corporate treasurers are under pressure to drive greater performance in cash management and collections. Corporate treasurers need to make a watertight case for investment in the technologies needed to turn these processes into cash generators.
• Dealing with Liquidity Risk
  Mario Tombazzi, HSBC Global Transaction Banking - 21 Jul 2009 One of the most obvious consequences of the credit crisis has been the reduced availability of external liquidity. This article examines the lessons that have been learnt and the most effective responses.
• Are UK Regulators Missing the Boat?
  Adam Lawson, Beltane Ventures - 30 Jun 2009 The current tide of regulatory prescription in the UK focusing on treasury risk management is notable for its lack of detail on the internal funding 'frameworks' of banks.
• Alternative Funding: There Must be an Angel
  Michael Weaver, Beer & Partners - 30 Jun 2009 With funding options from banks tightening, some small corporates are investigating the world of angel investing - raising capital by selling stakes of their business.
• Standardising Dematerialised Mutual Fund Sales Agreements
  Praveen Daga, Infosys - Hari Shankar Gupta, Infosys - 9 Jun 2009 This article examines the proposed dematerialised mutual fund sales agreements (DMFSA) between fund promoters and distributors, intended to overcome the problems associated with the current practice of inking paper agreements, and their potential to change the global mutual fund distribution landscape.
• Improved Communication: A Vital Component of MMF Reform
  Matt Clay, Clearwater Analytics - 9 Jun 2009 Greater transparency and disclosure may curtail the need for more onerous regulation and preserve the value of money market funds as a vital liquidity management tool.
• Challenges and Opportunities of the New Liquidity Regulation
  Matthew Jarman, Atos Origin - 26 May 2009 The new liquidity regulation is not so much an opportunity as an exercise in 'survival of the fittest balance sheet'. Capturing, measuring and managing the liquidity flows of the organisation are key responsibilities of the treasury function.
• Credit Ratings Agency Answers gtnews Readers' Questions
  Barry Hancock, Standard & Poor's - 17 Feb 2009 Credit ratings agencies have been criticised for their role in the current economic turmoil. In this article, Standard & Poor's answers a number of questions posed by gtnews readers.
• The Collateral Cure for Cash
  Olivier De Schaetzen, Euroclear - 3 Feb 2009 Many corporate treasurers are looking to invest in the repo market where an attractive risk/reward balance can still be attained.
• Latest Trends in Base Metal Commodities Trading
  Gil Bray, Misys - 3 Feb 2009 The OTC base metal trading market has had a traditionally conservative view to automation when compared to other commodities markets. However, today there are a number of driving forces that may prove irresistible.
• Challenges Treasurers Faced in 2008 and What to Expect in 2009
  Peter Reynolds, Reval - 6 Jan 2009 This article, based on a webinar roundtable hosted by Reval, explores the credit crunch and its affects on corporates, as well as looks at some of the future issues that corporates will face in 2009.
• Managing Risk and Liquidity During the Credit Crunch
  Mandar Pitale, Polaris Financial Technology - 9 Dec 2008 This article provides an overview of the flaws in risk assessment systems that have surfaced during the current crisis and suggests a much-needed paradigm shift from reactive risk controls to predictive risk assessment.
• Investments Flourish in Sub-Saharan Africa
  Rajesh Ramsundhar, Standard Bank - 18 Nov 2008 As investments in sub-Saharan Africa have boomed over the past five years, what opportunities is this creating in the region? This article looks at the answers to this question with reference to several countries.
• Understanding Collateralised Debt Obligations - The Epicenter of Write-downs in the Credit Crisis
  Mandar Pitale, Polaris Financial Technology - 11 Nov 2008 This article provides a conceptual understanding of collateralised debt obligations and their structured variants in order to gain a better understanding of the fundamentals of this financial innovation, which is at the heart of current credit crisis.
• Basic Notions on Islamic Private Equity Funds
  Paul Wouters, Bener Law Office - 21 Oct 2008 This article looks at the different Islamic investment instruments, such as sukuks, and 'rules of thumb' that should be adhered to in order to be shariah compliant.
• Treasury Management in Sub-Saharan Africa
  Barry Wolde Yohannes, ASA International - 21 Oct 2008 Sub-Saharan Africa poses many challenges to investors but, as telecoms firm Celtel proves, there is the potential to reap impressive returns on investments.
• Liquidity Squeeze Drives Opportunity for Change?
  Michael Gallanis, Treasury Strategies - 14 Oct 2008 How did corporate treasury departments fare in the recent financial turmoil? This article explores how and why some treasury organisations have managed to operate effectively during the most turbulent times, as well the opportunity for change that could be the only silver lining with regard to current market turbulence.
• The Commodity Management Mindset
  Michael Schwartz, Triple Point Technology - 16 Sep 2008 With the right approach, organisations can exercise far greater financial control over the commodity supply chain by moving away from a procurement mindset and towards a market mindset.
• Do We Need New Corporate Performance Indicators?
  Olivier Brissaud, The European Association of Corporate Treasurers (EACT) - 12 Aug 2008 How should corporate performance be assessed? This article argues that it must no longer be based on short-term financial profitability but also the efforts of companies to get to grips with the challenges of tomorrow.
• Secure Profits For Argentina's Soy Investment Funds
  Ana Belluscio - 10 Jun 2008 As investment funds search for profitable commodities to buy into, this article looks at what is happening in the Argentinean soybean market.
• China Expands Investment Scope for Offshore Wealth Management
  Maurice Hoo, Paul Hastings - Arthur Zwickel, Paul Hastings - 18 Mar 2008 The expansion of China's QDII program has allowed it to meet the needs of its developing financial community. This article examines these changes and the associated benefits.
• Growth of Corn Commodities
  Jesse Greenwald, MF Global - 15 Jan 2008 No longer solely for eating, corn is increasingly being used in the production of ethanol and it is now considered an energy commodity. This article looks at developments in the corn commodity market.
• The Case for Absolute Return Investing
  Daniel Sheard, Augustus Asset Managers Limited - 14 Dec 2007 This article discusses how poor equity and fixed income performance have driven the development of absolute return investment and how it is becoming an established alternative to traditional asset management techniques.
• Managing Cash as a Strategic Asset - Implications and Solutions
  Thomas Schickler, JP Morgan - 8 Nov 2007 As a result of the rise in cash-rich corporates, cash is now an important strategic asset for treasury. This article looks at how managing cash in this way can benefit corporates.
• Secondary Market for Debt - An Answer to the Credit Crunch?
  Kingsley Greenland, DebtX - 8 Nov 2007 As real estate loan losses continue to mount, financial institutions on both sides of the Atlantic face greater pressure to aggressively manage their loan portfolios to minimise the drag on earnings. How can they achieve this?
• Time for Real-time Cash Management?
  Christos Elefteriadis, SmartStream - 8 Oct 2007 Receiving timely and secure transaction data is vital for a company's cash balances, and Nostro agents are an important part of this process. This article looks at how funding and lending opportunities can be maximised through real-time cash management.
• Multi-asset Portfolio Systems: Serving the Growth of Hedge Funds
  Denise Valentine, Aite Group - 2 Oct 2007 The increasing use of OTC derivative instruments is altering the development queue for portfolio systems. Multi-asset portfolio systems - those able to process all types of assets, including non-listed exotic instruments - are attracting the interest of hedge funds and traditional asset managers.
• Order Management Systems: Industry Challenges & Trends
  Cornelius Nandyal, Hexaware Technologies - 13 Sep 2007 Modern-day order management systems are evolving into sophisticated systems that create a complete investment management solution. This article examines the key trends in the market that are driving changes in this area.
• Asset Liability Management - the Indian Perspective
  Srividhya Muralikrishnan, Tata Consultancy Services (TCS) - 29 May 2007 There are several different approaches to asset liability management and this article examines the use of the duration gap methodology for measuring interest rate risk from the earnings perspective in the Indian banking industry.
• Implementing Active Credit Portfolio Management
  Tasneem Chherawala, Infosys - Rhujuta Kene, Infosys - 21 May 2007 Banks are moving from standalone risk measurement to portfolio risk measurement and management. This article discusses active credit portfolio management (ACPM) and finds that Basel II data management infrastructure can be leveraged for ACPM implementation.
• Uncover the Value Drivers of Your Hedging Strategies
  12 Apr 2007 A well-designed hedging strategy and approach aligned with corporate requirements is incredibly valuable. Moreover, it enables more effective communication about the business and economic rationale for the use of derivatives in hedging treasury risks.
• Optimizing Returns Through An Efficient Short-Term Investment Portfolio
  Keneth Vallen - 13 Nov 2006 Cash managers should be aware of the dangers of an inadequate short-term investment strategy. But what steps do they need to take to assemble an efficient short-term investment portfolio? This article also focuses on the execution of money market investments when forming and maintaining an efficient short-term investment portfolio.
• Non-Bank Finance Options for SMEs
  Rod Tonna-Barthet, Siemens Financial Services Limited - 18 Sep 2006 This article looks at the variety of non-bank finance tools that SMEs can use when they suffer from cash flow problems.
• Drawing Attention to Business Interest
  Linda McBain, Investec Private Bank - 4 Sep 2006 Lack of knowledge on deposit account interest rates could be preventing companies from maximising their turnover potential. This article looks at how to avoid this problem.
• Investing for Growth: Comparison of German and UK Markets
  Jonathan Andrew, Siemens Financial Services Limited - 30 May 2006 A study on German and British mid-sized firms reveals a contrast in the way these companies are investing for growth and the ways in which that investment is financed. While German firms have moved substantially away from traditional bank borrowing, and are taking up alternative financing arrangements, UK companies are showing a more bullish attitude and are taking on traditional and alternative financing to a very high level compared with their profits.
• Guidelines for Choosing Corporate Debt
  Pearse Rutledge, Ernst & Young - 17 Jan 2005 Different corporate debt structures come in and out of favour. Treasurers should understand the latest trends, but need to look beyond this season's fashions when deciding what's best for their organisation.
• Regulation and Risk Management: Value-at-Risk as a Unifier
  C Vasanta Madhavi - 11 Oct 2004 As a proactive tool, Value-at-Risk can help financial institutions adapt to new regulatory developments. VaR is commonly used to hedge against portfolio risks and to assess potential losses, but can also be used to comply with the capital adequacy requirements and other new regulatory initiatives.
• Currency Management: The New Weapon of Mass Performance
  14 Jan 2004 Currencies account for a significant portion of a portfolio's risk and return, but they march to their own beat, and they have to be managed. Maxime Tessier of TAL Global Asset Management explains how active currency management, whether it consists in hedging or overlay, can help reduce overall portfolio risk and transform existing risk into additional returns.

Investment Management Blogs

• Show Report: FPL Opening Speaker Neil Warns About Health of UK Economy
  Neil Ainger, gtnews - 7 Mar 2013
• AFP2012: Demystifying the Private Placement Debt Market
  Michael Connolly, Tiffany & Co - 12 Oct 2012