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Industry roundup: 20 July 2020

Cashforce and TIS partner on end-to-end cash and payments solution

Cashforce and TIS (Treasury Intelligence Solutions GmbH) have announced that they have formed a strategic alliance. This collaboration will provide a solution for corporates requiring a rich cash forecasting and payment experience with seamless integration to their banks and their enterprise systems such as ERP and TMS.

With universal ERP connectivity a common strength, the pairing of Cashforce’s cash forecast modelling and working capital analytics together with TIS’ global bank connectivity and payment capability provides corporations a flexible solution to adapt to treasury’s changing needs.

"The end-to-end solution of our combined products provides a seamless experience from the discovery phase, through implementation to support; exactly the level of integration our clients and prospects are looking for," commented said Nicolas Christiaen, CEO of Cashforce.

"Our API connectivity with Cashforce will bring integration and customer experience to the next level," added Joerg Wiemer, CEO and co-founder of TIS.


ICD and The Carfang Group introduce quantitative model for corporate treasury MMF investing

ICD, an independent portal provider of money market funds and other short-term investments, and advisory firm The Carfang Group have developed a quantitative model for assessing risk-weighted investment opportunities in money markets. The firms introduced the model, Beta(m) last week. 

“Balancing safety, liquidity and yield while adhering to corporate investment policies is never easy, especially when there is unrest in the markets as we saw in March this year,” said Justin Brimfield, chief marketing officer at ICD. “Because the dynamics of the market are always shifting, corporations can’t just take a set-it-and-forget-it approach to their investments. Now ICD has a quantitative tool to assess the risks/returns of money market investment products.”

The Beta(m) model is based on Nobel Prize winning economist Harry Markowitz’s Modern Portfolio Theory (MPT), adapted for the money markets. MPT looks at volatility as a method for measuring risk, and states that a diversified portfolio is less risky than risk associated with each individual security within. From MPT, plotting The Money Markets Efficient Frontier allows investors to identify investment opportunities and to avoid investments that are not worth the inherent risk based on their return.

“Corporate investors usually evaluate short-term fixed income securities based upon their position on the yield curve," said Tony Carfang of The Carfang Group. "However, this methodology falls short when evaluating instruments with different pricing, trading and credit characteristics. Beta(m) allows you to view your investment options on an apple-to-apples basis, allowing corporates to set their short-term investment strategy regardless of where they fall on the risk-tolerance spectrum."


London Stock Exchange Group selects ION for hedge accounting

ION, a provider of trading, analytics, and risk management solutions, has announced that London Stock Exchange Group (LSEG) has selected ION Treasury’s Reval Center for portfolio valuation services and hedge accounting.

LSEG selected Reval Center to ensure compliance with regulatory reporting requirements and minimise its exposure to unexpected volatility, price changes, and market turbulence by managing the hedging of its debt and derivatives trading portfolio.

Reval Center uses market data and innovative financial analytics to deliver fast, accurate, and reliable valuations for derivatives and other financial instruments. The service is used to value a broad range of financial instruments and manage the hedge accounting of their derivatives.


Santander and EIB Group provide almost €760m for SMEs affected by COVID-19

The European Investment Bank (EIB) and Santander have signed several agreements to support Spanish companies affected by the economic impact of the pandemic. With this goal in mind, the EU bank will provide the Spanish institution with €757m to inject liquidity and finance the investments of small and medium-sized enterprises (SMEs) and mid-caps at a particularly difficult time. Under this agreement, it will be possible to offer them financing with favourable conditions in terms of both interest rates and maturity periods to drive the recovery of Spanish industry. 

The EIB is providing these funds as part of the initiatives it launched as a rapid response to the crisis caused by the pandemic. In concrete terms, in March the EU bank approved an initial response to mobilise up to €28 billion in financing by providing bridging loans and deferral periods and taking other actions to mitigate the shortage of working capital among SMEs and mid-caps, in cooperation with financial intermediaries in the EU Member States. The EIB Group has also taken extraordinary measures to speed up its processes and make its internal policies more flexible in order to - among other things - deploy its support as quickly as possible and finance expenses that it would not normally cover, such as the operating costs of European businesses.

Under the agreements signed with Santander, €100 million will be specifically targeted at financing the investment projects of SMEs operating in the agri-food sector and affected by the crisis caused by the pandemic, and a further €100 million will be used by Santander Consumer Finance to provide liquidity to Spanish SMEs affected by the COVID-19 crisis and that need to renew their transport fleets with new, more efficient and environmentally friendly vehicles. This credit line will also make it possible to purchase agricultural equipment and buses. 

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