Peter Matza Engagement Director ACT ASIFMA Annual Conference 2014: - - PowerPoint PPT Presentation

Peter Matza Engagement Director ACT

ASIFMA Annual Conference 2014: Developing Asia's Capital Markets – Moving from Bank Lending to Capital Markets: How Do We Encourage It?

• Bank facilities less available / price constraints
• Bank relationships changing - ‘KYB’
• Financing options becoming very diversified
• Risk higher up the agenda
• Concerns around bank as counterparties

– Invested cash – Derivative mark to market – Ability to meet RCF commitments

2

Changes to the context of corporate treasury

• Committed facilities

– Bank facilities – Trade / Asset finance – Capital investors

• Uncommitted facilities

– Derivatives – Daylight lines / Overdrafts – Trade / Asset finance

3

Corporates need credit

• Bond / capital markets cannot fully replace bank markets
• Key will be to complement / support necessary facilities
• Banks to better understand corporate balance sheets,

business strategy and financing needs

• Corporates to appreciate need for funding and investor

diversity (by improving the quality of their treasury teams!)

4

How should corporates use fixed income markets?

• Transparency e.g pricing / value
• Consistency e.g. documentation / regulation
• Simplicity e.g. process / ease of access
• Practicality e.g. does it work for me?

5

What do corporates need from fixed income markets?

ACT is the authentic voice of the treasury profession; educating, supporting and leading the treasurers of today and tomorrow.