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Case Study: Implementing an A2/P2 CP Program
Following the $1.1 billion acquisition of Norit N.V., Cabot's debt balance grew from $600 million to $1.4 billion. Cabot’s treasury team was mandated with reviewing the capital structure and establishing ways to optimize interest expense by rebalancing the company’s fixed versus variable debt.
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Up Close: FP&A in Banking
Many aspects of FP&A are fundamental across industries and markets. To the extent that the business models of industries differ, however, so too does the analysis. In traditional banking, two unique aspects of the business require significant analytical attention: the interest margin and asset quality.
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Corporate Issuance of CP Continues to Drop in Canada
Until recently, Canada levied a withholding tax on commercial paper issues in the United States, making it attractive for Canadian subsidiaries of U.S. parents to issue CP in Canada. But since the tax was lifted 18 months ago, CP issuance by foreign entities has dropped significantly in Canada—a trend that will likely continue.
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Five Ways to Protect Your Company from Mis-sold Swaps
In June 2012, the Financial Services Authority (FSA) revealed that banks may have been mis-selling interest-rate hedging products (IRHPs) to businesses. Almost a year later, after assessing eight large UK banks, the FSA has released a pilot report announcing that an estimated 90 percent, or about 40,000 IRHPs, were mis-sold to unsophisticated users from 2001 to present.
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AFP Fraudwatch: A Cautionary Tale for Corporates
Corporates should think twice before refusing their banks' security
recommendations. Otherwise they could be held liable when a fraud loss
occurs, if a March 18 court decision is any indicator.