Federal Reserve Considers Balance Sheet Options
Implications for your Business
The potential effects of the Fed’s move on borrowing costs is causing companies to closely examine their fixed rate debt, floating rate debt, future financing needs and potential changes in loan structure. The most important consideration is how the current market environment may affect their company’s cash flows and/or value of assets/liabilities.READ MORE
Trade negotiations, including changes to NAFTA and the uncertainties presented by Brexit make the need for foreign exchange risk mitigation more urgent than ever.
Evaluate current risk management practices, including the establishment of a hedge policy. Ensure that your internal policies and controls correctly account for risks. Update your management reporting systems to correctly list your FX exposures and hedging activity.
PNC’s economists forecast that the Federal Reserve will continue to raise interest rates throughout 2017 and beyond.
In order to reduce the impact of rising rates on borrowing costs, companies should develop and implement a comprehensive plan to manage their interest rate exposure. PNC speakers provide a perspective on how external factors may affect your financing costs and what you can do to regain control.
Healthcare systems should examine their current strategies, the adequacy of their information systems and the revenue and cost assumptions under which they are operating.
The uncertainty of the Affordable Care Act, cyber security, value-based payment models, mergers and consolidations, monetization of data, transformation of the care continuum and blockchain solutions are among the issues that successful healthcare systems have addressed. Find out what has worked.
Get an overview of the business climate within China and recent international developments affecting the market.
Understand the macroeconomic outlook as it affects transactions with China, identify best practices for doing business in China, outline key issues and considerations related to setting up on-the-ground operations in China and gain insight into the currency market and the growing role of the renminbi (RMB) in international trade.
Despite the prospect of a higher interest rate environment, access and availability in the debt capital markets remain open and attractive in both floating and fixed-rate segments.
Banks maintain a solid appetite for new loans as we enter 2017; however, it remains to be seen if banks begin to become more selective in their investment decisions in the overall context of a rising rate environment coupled (potentially) with a less rigid regulatory environment.
2016 included a number of significant political and economic events that will usher in changes during 2017.
PNC’s Harris Williams & Co. subsidiary (www.harriswilliams.com) is a leading M&A advisor with experience across a wide range of industries. Bill Watkins, Managing Director, and Larissa Rozycki, Vice President, discuss results from 2016 and the rationale behind predictions for 2017 M&A activity.
Cyber criminals are finding new and subtler ways to infiltrate legitimate businesses to conceal or advance their objectives.
As a financial institution that is focused on creating long-term, collaborative relationships with its customers, PNC believes strongly that the USA PATRIOT Act requirement to know our customers, their ownership, business purpose, suppliers and customers benefits our national security — and your security as well.
When outside capital is needed, good cash flow and working capital management will make it easier to find and less expensive no matter what the economic cycle.
Companies that make working capital efficiency part of their organization’s culture have the opportunity to generate more of their working capital internally, thereby lowering costs, improving their performance and boosting their competitive position.
Whether you have made the decision to sell your business or are just exploring your options for the future, understanding the road ahead can mean the difference between success and disappointment.
Business sales are complex transactions that are influenced by many variables. Planning ahead can increase the likelihood of success and potentially enable you to navigate tax considerations. An experienced investment banker who is familiar with your industry can ensure that your business is positioned to achieve maximum value and that the sale process is managed properly.
More and more companies are exploring the benefits of an asset-based solution. It works especially well in industries with tighter operating margins.
With liquidity at a premium, asset-based lending can be a particularly attractive alternative to a traditional bank loan or, to having to raise equity, which could dilute ownership. It can help middle-market companies move their business forward.
Yield curve efficient interest rate swaps closely follow the expected future path of interest rates. The frequency and timing of increases can be tailored to meet cash flow needs.
Interest rate derivatives can deliver a number of benefits in today’s environment. For example, they are completely customizable. Financial managers and treasury teams can use derivatives to fine tune their interest rate profiles and maturities according to their risk tolerance and cash flow needs.
Companies are continually looking for ways to stay ahead of the competition. And yet many of them overlook the benefits of regular interaction with their banking team.
It's a good idea to meet with your banker and talk through upcoming expenditures, including capital expenses. Get to know your bank and the people on your banking team. Regular meetings can help your banker capture a more accurate picture of your business and respond more quickly when needs and opportunities arise.
Unquestionably Dodd-Frank and the Consumer Protection Act are the most comprehensive financial regulatory reforms our government has taken since the Great Depression. They affect many areas of the financial markets.
Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act imposes a new regulatory regime on the U.S. swaps market. As a swap dealer, PNC must comply with these requirements and there are a number of regulations that will directly affect swap end-users.This webinar replay provides an overview of the new regulatory environment.
The ability to offer your customers and prospects financing for the purchases they make from you at competitive rates can help you meeting important business goals.
Using financing as a core sales strategy can help you sell more of your product to more people and keep your customers longer. You can close deals faster, include more product in the sale and get paid faster. Vendor finance programs also deliver significant benefits to your customers. They can get financing more quickly at favorable rates.
Amost half of international companies surveyed reported growth of 20% or more while those that did not do business internationally lagged behind.
The Export-Import Bank of the United States was established in 1934 to serve as the official export credit agency of the United States to create and sustain U.S. jobs by financing sales of U.S. exports to international buyers. PNC has worked with the Ex-Im Bank for more than 40 years.
Equipment is just as important to the success of your company as intellectual capital and management strength. Are you leveraging its value to deliver maximum benefits?
Many companies have minimized or frozen spending and investments. However, the pressure to stay competitive in the global marketplace makes it unrealistic to hold off on technology and operations improvements for the long term. It's time to determine what initial investments make the most sense and how to finance them. We take a look at some creative approaches.
Securitization allows a company to monetize its trade receivables by legally isolating the assets from the bankruptcy estate of the company originating them.
As attractive revolvers mature over the next four years, there can be a liquidity gap that could hamper a company’s ability to finance working capital needs and pursue growth opportunities. Securitization can close that gap. It has enabled many companies to increase liquidity, lower financing costs and diversify their overall capital structure.
Industrial Revenue Bonds
Public sector financing can support private development projects that will fuel economic growth in communities. The lower interest rates and longer payment terms characteristic of programs such as tax-exempt Industrial Revenue Bonds (IRBs) can be used to finance growth.
Syndicating your bank credit facility can enhance your access to liquidity so that you can deal with day-to-day challenges and opportunities more effectively.
Syndicated loans can deliver capital in a timely manner and on more favorable market terms compared to conventional loans. By working with a group of banks rather than a single provider, you can also mitigate the risks that might arise from dealing with only one bank in an unpredictable environment.
Many companies are finding that an asset-based structure provides the liquidity necessary to quickly execute a buyout or facilitate a turnaround plan.
In the past, asset-based financing was viewed as the best option for companies with high risk profiles. Today, the rules about what type of company can benefit from this strategy are changing. And more and more are embracing the flexibility that asset-based financing can offer.
While banks today still consider traditional criteria like cash flow, leverage, equity and collateral, the experience and integrity of the management team is growing in importance.
Some managers who find themselves in challenging circumstances may be reluctant to talk with their bankers, fearing that relaying bad news might close off credit options. Successful companies are open and transparent with their banks, through good times and bad.
Credit is available with competitive terms for companies that see their bank as a vital resource. Here are tips for keeping an open relationship with your banker.
Imagine that you run a mid-size company with deep ties to an industry challenged by economic conditions. After decades of success, growth has stalled -- and your income statement is beginning to show it. Open communication with your banker puts everyone in a better position to structure and negotiate the right credit solutions for the challenges at hand.