TREASURY & CASH MANAGEMENT: Blogger and contributing writer Karen Kroll supplies the Business Finance community with reporting and commentary examining cash management and treasury-related topics. Karen earned a BS in Business Administration from Valparaiso University and an MBA in finance from the University of Washington.
In this tight market, finance execs need to work on their liquidity management structure to improve their company's working capital. Margaret Yao, managing director with JPMorgan's liquidity solutions area, explains how.
The popularity of asset-based lending, which are loans secured by an asset, is continuing to grow. With the exception of 2001, the volume of outstanding asset-based loans has shown year-over-year growth since 1992, says Brian Cove, the Commercial Finance Association's chief operating officer.
Treasurers and CFOs are changing the way they do business as times get tougher, according to Jim Graves, senior vice president with Key Bank. Some of these adjustments include more highly emphasizing credit quality, offering payment guarantees, and taking greater interest in card programs.
Although a World Bank report found signs of growing protectionism among G-20 countries, a new HSBC Bank USA survey revealed that business execs are still turning to foreign markets for growth.
Over-the-counter (OTC) products can hedge a firm's exposure to interest rate and foreign currency fluctuations; however, exchange-traded instruments also have their benefits. Marcus Katz, director of interest rates products and services with CME Group, explains the differences between the two.
Dividend cuts have outnumbered increases for the first time in more than 50 years, according to Standard & Poor's. It's too early to tell if this is a permanent change in how companies determine dividend payments.
Companies are struggling to find out where the cash is and most are trying to generate it internally. To manage the issue, companies need visibility into organizations' cash-generation and cash-consuming activities, which requires performance management or business intelligence tools.
