The US payments landscape is in the midst of significant change. A spark of new capabilities – including developments to existing payment rails, the dawn of real-time payments and the emergence of innovative overlay services – is transforming the entire payments ecosystem. What’s more, with the current challenging environment causing unprecedented disruption to manual processes, the value of moving away from paper-based payments towards faster, more streamlined digital alternatives has never been more apparent. With the stage set for the transition to digital, banks are being presented with the opportunity to revolutionise both payables and receivables for their clients.
As clients increasingly look to venture into the world of digital – leveraging tools including APIs, real-time payment capabilities and pre-validation technologies, Carl Slabicki, Head of Strategic Payment Solutions at BNY Mellon explores how banks must ensure that they can support the full breadth of client requirements.
Read the full article here
The International Chamber of Commerce (ICC), the institutional representative of 45 million businesses worldwide, has announced the creation of a new Advisory Group on Trade Finance (ATF) – a cross-sectoral coalition of leaders in global trade.
The ATF – co-chaired by Victor K. Fung, Chairman of the Fung Group, and Marcus Wallenberg, Chair of SEB – will work to inform policy reforms and interventions to prime the trade credit ecosystem to power a rapid economic recovery from COVID-19.
The news was covered by CTMfile, Ledger Insights, Global Banking and Finance Review, Fintech Finance, Breaking Finance, Business Money, The Asset, Trade Finance Global, TXF News, Fintech Insight, TRF News, Finextra, Supply and Demand Chain Executive, Fintech Inshorts, Treasury Today.
Promoting the launch of the GSCFF’s latest report, Christian Hausherr (Chairman, GSCFF and Product Manager Trade Finance / Supply Chain Finance EMEA, Deutsche Bank), Stacey Facter (Senior Vice President – Trade Products, BAFT) and Peter Mulroy (Secretary General, FCI) spoke about the misuse of payables finance in the latest episode of Trade Finance Global’s Trade Finance Talks Podcast.
The report, Ensuring payables finance remains a force for good, aims to address criticisms of payables finance across three key areas: the potential adverse impact on suppliers, issues relating to financial reporting and transparency, and overall programme risk.
To listen to the episode, please click here.
Speaking with GTR, Christian Hausherr (GSCFF chair and European head of payables finance at Deutsche Bank), Peter Mulroy (FCI secretary general) and Stacey Facter (senior vice-president for trade products, BAFT) discuss the misuse of supply chain finance and the release of the GSCFF’s new report – Ensuring payables finance remains a force for good.
“If correctly implemented, it is clear that payables finance is a means for buyers and sellers to optimise their working capital and strengthen their relationships with each other. It is our goal to ensure that this is correctly implemented across all industries and geographies.”
To read the full interview, please click here (paywall).
The Global Supply Chain Finance Forum (GSCFF) – comprising BAFT (Bankers’ Association for Finance and Trade ), FCI (formerly known as Factors Chain International), the International Chamber of Commerce (ICC), the International Trade & Forfaiting Association (ITFA) and the Euro Banking Association (EBA) – has released a new paper in response to growing concerns regarding the use of supply chain finance (SCF) and, in particular, payables finance programmes. The report, Ensuring payables finance remains a force for good, aims to address criticisms across three key areas: the potential adverse impact on suppliers, issues relating to financial reporting and transparency, and overall programme risk.
To read the full report, please click here.
The news was covered by GTR, TXF, Finextra, Financial IT, The Paypers, Trade Finance Global, Fintech Finance, TRF News, Hellenic Shipping News, Fintech Insight, Sailor News, Business Money, Supply and Demand Chain Executive, Capital Finance Club, Breaking Finance, Fintek News, PYMNTS, Procurement Nation, CTMfile, The Corporate Treasurer, Supply Management, Marasi News, Supply Chain Best Practices.
Writing for the Global Listed Infrastructure Organisation’s Journal (GLIO), Karl Nietvelt, Global Head of Analytical Excellence & Research, Global Infrastructure, at S&P Global Ratings, looks at how the COVID-19 pandemic has affected the infrastructure asset class.
While infrastructure is known to be largely resilient to shocks, it is by no means immune. Certainly, as a result of the pandemic, credit quality within the sector has been tested to a greater extent than during the global financial crisis, with transportation infrastructure assets coming under considerable strain. Indeed, the sector has seen close to 10% of ratings downgraded in recent months, as volume decreases on an unprecedented scale and prospects for recovery remain uncertain.
The full article can be found here.
If the EU carries out a proposal to finance 30% (€225 billion) of its planned €750 billion recovery fund through green bond issuance, it could become the main liquidity provider for a green safe asset, as well as the largest supranational liquidity provider for a green safe asset, according to a report recently published by S&P Global Ratings.
A larger pool of green assets would also help policymakers and central banks achieve their aim of greening the financial system. Today, the green bond market represents only 3.7% of total global bond issuance, making it difficult to ask market participants to build green portfolios. This will also likely reinforce the international role of the euro as a green currency.10
Following outreach by Moorgate, the news was covered by: Global Capital, DevDiscourse, Scottish Financial Review, International Financing Review, ESG Clarity, Chief Investment Officer, and Opalesque
The recent surge in social bond issuance indicates that the COVID-19 pandemic has not turned issuers’ or investors’ attention away from sustainable finance. Rather, interest seems to be growing, says a recent S&P Global Ratings report.
Corporations and financial institutions are likely to become more active in the social bond market as the pandemic accelerates private issuers’ interest in social considerations, the ratings agency believes.
In terms of issuance, Europe leads – reflecting its unique regulatory and political drive to stimulate activity in the sustainable finance markets. S&P Global Ratings believes these regional trends indicate that riskier investments, earmarked for social objectives, may be drawing increasing investor interest.
Following Moorgate’s outreach, the report was covered by Environmental Finance, ZAWYA, ETF Trends, Chief Investment Officer, and Philadelphia Tribune
Widespread coronavirus-related lockdowns and general economic downturn have had an unprecedented effect on global air traffic, which is projected to be down 55% in 2020. Writing in Aerotime, Julyana Yokota, Senior Director, Infrastructure, at S&P Global Ratings, takes a look at the implications for the global airport sector.
While airports generally enjoy stronger liquidity positions than airlines, they are now facing significant credit stress – especially given the uncertainty surrounding aeronautical revenue. With aviation charges likely to be lower due to a weakened airline sector, airports must make an effort to diversify their revenue streams. Some level of structural change in the airport sector is inevitable, however the asset class’ infrastructural significance is means it is likely to survive the turbulent times ahead.
The full article can be found here.
Speaking to Bloomberg, Eric Arnould, Global Head of Equity Capital Markets at Natixis, comments on Europe’s largest fundraising deals coming from bonds that can convert into equity and investors betting that the underlying stock will jump 50% or more in the next few years.
“Exposure to equity, coupled with volatile equity indexes and stabilization of credit spreads, is likely to spur even more convertible bond issuance in the second half of the year”, explains Arnould.
To read more, please click here.