Lights, camera, action!

There’s always a sense of nervousness when running a conference which involves bringing together 1100 people! No, not the food (although sometime, yes, the food!) or the WiFi or even if the coffee is drinkable! It’s much more than that. What we at the ACT worry about most is that everyone gets the fullest benefit possible from 48 hours with their peers, their financial services providers (or at least as many of them as we can get to the conference) and the many other disciplines and organisations who are attending. We are trying to create a sense of community and

What’s over the horizon?

Two new(ish) worries for firms to ponder. Tax deductions on interest expense First, The Economist newspaper of last week has a leader and several pages of article advocating the ending of tax deductions for interest payments. This has been advocated by a number of academics for many years. And it received a boost when excessive leverage – more interest, and so more tax deductions – was seen as contributing to the financial crisis of 2007-8 and the separate euro-crisis since 2009. Politicians everywhere, trying to balance budgets, are likely to be very tempted by a new way of reducing “tax

Costly cash holdings

What is the cost of all the cash and short-term investments of private non-financial corporations (PNFCs)? For UK firms, the Bank of England (BoE) gave us clues last week: not as high as it was, not as low as it has been. The BoE’s Statistical release on Effective interest rates for March 2015, reports its survey of 23 monetary financial institutions (MFIs) shows new cash deposits from PNFCs returning an average 0.48% while the rate on their new lending to PNFCs was 2.43%. So, maybe the cost of carry is 1.95%. That sounds a lot – but the average loan

Year-end cash management

2014 It seemed to go much better this time. After a number of companies had to scramble to place sterling and euro cash at year-end 2012 and there being some pressure at end 2013, ACT Policy & Technical have the impression that more attention from all sides has meant 2014 year-end has seemed unremarkable.

Welcome to London…mind the gap

This month the ACT hosts the International Group of Treasury Associations (IGTA) annual meeting in London and we have much to talk about. This year’s IGTA meeting is themed around Preparing Treasurers for Change.

Of course, for corporate treasurers much has changed since last year’s IGTA meeting in Washington. We’ve all got our ‘regulator score cards and pencils at the ready’ to see how the G20 Pittsburgh legacy has worked through to commercial and industrial companies in practice.

US money-fund rules: corporates will just have to get a little smarter

Monday 28 July

New US institutional money market fund rules will come into effect over a couple of years. But expect funds and investors to change much faster than that. And we have new rules to look forward to in Europe in due course. Non-financial corporates have opposed new money-fund rules. But now they have to live with them. Changes for US prime funds that corporates use1