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?

2 Changes to the context of corporate treasury • 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

3 Corporates need credit • Committed facilities – Bank facilities – Trade / Asset finance – Capital investors • Uncommitted facilities – Derivatives – Daylight lines / Overdrafts – Trade / Asset finance

4 How should corporates use fixed income markets? • 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!)

5 What do corporates need from 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?

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