...continuing operations and aimed to lend long-term (8-10 years) debt at a fixed rate. Treasury rates were at 10.1 % and BF Goodrich anticipated paying approximately 12% to 12.5%. The firm was not willing to stipulate an agreement with its current bank, in order not to comprise the flexibility of its future choices. Goodrich wanted a fixed rate, but they believed it would have to pay about 13% for a 30-year corporate debenture. Rabobank Rabobank is one of the largest Dutch banks, consisting of more than 1,000 small agricultural banks. The bank was interested in securing floating rate financing on approximately $50,000,000 in the Eurobond market. Considering their AAA rating, Rabobank could issue fixed rate in the Eurobond market for 11% and for a floating rate of LIBOR plus 25 basis points. Without an active swap market it was common for swaps to be arranged between the two counter parties. Rabobank was interested in the deal but feared the credit risk, as Goodrich’s credit rating had recently been downgraded to a BBB- status. A direct swap would therefore expose Rabobank to credit risk. The two finally reached an agreement to use Morgan Guaranty as an intermediary. The following diagram shows all the transactions. Note: all the observed rates are semiannual. Morgan Guaranty...
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...Coffee 2013: Ready for Take‐Off Overview of Coffee Trends in New Consumer Markets March 5, 2013 | Strictly private and confidential Agenda Sections I II III IV Introduction Strategic Considerations in Global Coffee Demand Regional and Country-Level Snapshots Key Points to Consider 3 7 13 22 2 4 1 Ross Colbert, Global Strategist Beverages Mr. Colbert joined Rabobank in January 2011 and is responsible for developing FAR’s research portfolio and Rabobank’s global view toward the beverage sector. Rabobank’s FAR team provides information and analysis covering all of the major sectors throughout the food chain. The seven-member FAR Beverage team is part of Rabobank’s global FAR group, which is comprised of Rabobank s approximately 70 analysts around the world. Colbert joined Rabobank following an extensive career in the beverage industry. Most recently he was Managing Director of M&A Americas for Zenith International, which is one of the world’s leading consulting, market intelligence and financial advisory firms focused on the global food and beverage industry. Prior to that, he was Managing Director and Chief Operating Officer for eight years at Beverage Marketing Corporation, which provides market intelligence and financial advisory services to the global beverage industry. Over his career he has served as an advisor to Pepsico, Coca-Cola Enterprises, Heineken, Nestle Waters, Snapple Beverages, and Seagram's as well as many independent, private beverage companies...
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...B.F Goodrich/Rabobank interest rate swap case By: Mitchell Gahan 13179537 James Grimard 13191612 Josh Hutchins 13220396 Lecturer: Colette Southam Due Date: 17/06/13 The first key issue in the B.F Goodrich/Rabobank interest rate swap case was why they felt the swap was needed? B.F Goodrich was the fourth largest U.S producer of tires and the largest U.S producer of polyvinyl chloride (PVC) resins and compounds. During 1982 Goodrich announced a $33million dollar loss and needed to borrow 50 million to fund its ongoing financial needs. In addition Goodrich was disinclined to borrow the funds in the short term as they didn’t want to compromise its future flexibility by borrowing short term. The company also felt due to the general level of interest being so high and its downgraded credit rating to BBB- that long-term fixed-rate money would be too expensive, estimated at approximately 13% on a 30-year corporate debenture. Another key Issue in the case was how could Goodrich reduce the rate of borrowing? During 1983 currency swaps and interest rate swaps were still a relatively new financial instrument. Although, the nature of a swap could be quite beneficially to both parties in theory as long as the swap was set up correctly. In theory Goodrich could reduce the rate of borrowing through an interest rate swap by paying a fixed rate and receive a floating rate payment. In this circumstance Goodrich could match its floating rate payments with their floating rate...
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...2014 Siwar Chihi, Bas Geelen, Konstantin Kraft & Ines Garic Zuyd University of Applied Sciences 2014 Siwar Chihi, Bas Geelen, Konstantin Kraft & Ines Garic Zuyd University of Applied Sciences Table of contents 1.1 Introduction to the research 3 1.2 Problem statement 3 Current 3 Desired 4 Gap 4 1.3 Methodology 5 1.4 Justification of methods 9 Research design 9 Research method 10 Research format 10 Research technique 10 2.1 Ethics 13 Data protection U.S. banks 15 Banks cash in on big data 16 Privacy vs. Security 17 Predicting with privacy 18 Privacy selling 19 Contrast between consumers privacy expectation versus their own online behavior 20 Expectations for growth internet users 2025 20 2.2Technology 22 Online banking approaches by different banks 22 SaaS business models 23 Why cloud computing for banks? 24 Privacy Trends 2014 – privacy trends in the age of technology 25 In-memory computing 27 2.3 Legislation 30 Europe Union 30 2.4 Future 31 Out in the open 31 Future sharing of finances 32 Changing Online ignorance 34 Cyber security trends for financial services 34 2.4 Results in-depth interviews 36 3.1 Basic needs 38 3.2 Drivers of change 39 3.3 Emerging consumer expectations 41 3.4 Inspiration 43 Target 43 Innovation by other banks 44 Luth Research 44 4.1 Technology 46 4.2 Changing user behaviors 46 4.3 Inconsistency 47 4.4 Legislation 47 5.1 Value...
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...Executive Summary 1. Background The urban cooperative banking sector has witnessed phenomenal growth during the last one and a half decades. Certain infirmities have, however, manifested in the sector resulting in erosion of public confidence and causing concern to the regulators as also to the well functioning units in the sector. One of the factors significantly affecting the financial health of the Urban Cooperative Banks (UCBs) is their inability to attract equity / quasi equity investments. At present, UCBs have limited avenues for raising such funds and even their share capital can be withdrawn. Against this backdrop, an announcement was made in the Annual Policy Statement for the year 2006-07 to constitute a Working Group to examine the issue of share capital of UCBs and identify alternate instruments / avenues for augmenting the capital funds of UCBs. Accordingly, a Working Group was constituted under the Chairmanship of Shri N.S. Vishwanathan, Chief General Manager-in-Charge, Urban Banks Department, Reserve Bank of India. 2. Methodology The Group deliberated on the various issues relating to its terms of reference on the basis of presentations made by its members. It also met Chairmen/ CEOs of a few medium/ large UCBs. The areas deliberated included international practices and structures for issue of bonds by cooperatives, adaptability of the provisions of Indian Companies Act, 1956 for issue of preference shares, State Government perspective on the issues...
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...Duurzaam ondernemen Maatschappelijk verantwoord ondernemen (MVO) of duurzaam ondernemen is het expliciet richten van de bedrijfsactiviteiten op het bereiken van een duurzame samenleving. Dit betekent het gebalanceerd zorgdragen voor People, Planet en Profit, om maatschappelijke verwachtingen te overtreffen. Daarmee wordt blijvende waarde gecreëerd voor de onderneming. DHV adviseert bedrijven met het vertalen van dit brede concept naar hun bedrijfskarakteristieken, stakeholders en strategie. Daarnaast helpen we bedrijven bij daadwerkelijke implementatie, monitoring en rapportage van en over duurzaam ondernemen. De wijdverbreide toepassing van het mantra People, Planet, Profit is een duidelijke illustratie dat maatschappelijk verantwoord ondernemen (MVO) niet meer weg te denken is uit het bedrijfsleven. Sterker nog, de aandacht voor het thema is groter dan ooit tevoren. Aandacht voor mens en milieu is net zo belangrijk als winst en vormen hier zelfs steeds belangrijker voorwaarden voor. Het Certified Professional Program (CPP) Maatschappelijk verantwoord ondernemen is opgezet om geïnteresseerden zich te laten verdiepen in MVO, het MVO-veld èn MVO-implementatie (know-what, know-why, know-where, know-who en know-how). Het programma is in samenwerking met MVO Nederland, het nationale MVO-kenniscentrum, opgesteld en wordt ook in samenwerking met MVO Nederland verzorgd. What's in a name? Duurzaam of maatschappelijk verantwoord ondernemen. Duurzaam ondernemen heeft feitelijk een...
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...Demografisch: Demografisch richt zich op de bevolkingssamenstelling zoals de bevolkingsopbouw, dichtheid, geografische kenmerken en verschillen en de infrastructuur. Bevolkingsopbouw Nederland vergrijst dat betekent dat er steeds meer 65 plusser zijn op steeds minder werkenden. De verhouding tussen jong en oud verandert. De oorzaak van de toenemende vergrijzing is gelegen in het verleden. Vlak na de tweede wereld oorlog werden in Nederland veel baby’s geboren. in de jaren zestig was de anticonceptie bil in de markt gekomen en toen werden er minder baby’s geboren. Maar ook in de jaren zeventig hebben vrouwen het krijgen van kinderen uitgesteld om eerste te gaan werken en daardoor werden de gezinnen ook kleiner. Vele kinderen die vlak na de tweede wereld oorlog geboren zijn gaan nu met pensioen. Aangezien er in de jaren zestig en zeventig minder baby’s waren geboren is er daardoor nu naar verhouding meer zestig blussers die steeds ouder worden door betere gezondheid zorg. En doordat ziektes beter te behandelen zijn leven ouderen langer. De mensen die nu werken moeten de pensioen en zorgkosten van de ouderen betalen. Dat is financieel veel zwaar gezien er meer ouderen zijn. Geplaatst door: statistiekcbs Geraadpleegd op 25-09 2013 http://www.youtube.com/watch?v=5yqwDwisiCI&feature=youtu.be bevolking geraadpleegd op 25-09-2013 http://www.cbs.nl/nl-NL/menu/themas/bevolking/nieuws/default.htm Dat de bevolking vergrijsist is een algemene probleem in heel nederland...
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...02-‐05 14 Compliance Self Assessment Betrouwbaarheid en Screening van Medewerkers Rabobank Leergang Compliance Professional -‐ Jordy Berben Compliance self assessment van de betrouwbaarheid en screening van medewerkers van De Lage Landen D e L a g e L a n d e n I n t e r n a t i o n a l B V V e s t d i j k 5 1 5 6 1 1 C A E i n d h o v e n Inhoudsopgave Begrippenlijst 1. Introductie 2. Wet-‐ en regelgeving van toepassing op DLL 2.1 Integriteit van het bedrijf 2.2 Beleidsregel geschiktheid 2012 DNB en AFM 2.3 Integriteitsgevoelige functies 2.4 Controle op sanctielijsten 3. Maatregelen voor DLL op basis van Wet-‐ en Regelgeving 3.1 Maatregelen integere uitoefening van het bedrijf 3.2 Maatregelen Beleidsregel geschiktheidstoets 2012 3.3 Maatregelen integriteitgevoelige functies 3.3.1 Integriteitgevoelige functies 3.3.2 Pre-‐ en In-‐Employment Screening (PES/IES) 3.4 Maatregelen controle op sanctielijsten 4. Gewenste...
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...card agencies set their interest rates to it. It is estimated that $350 trillion in derivatives and other financial products are tied to the Libor rate. CNN has been running stories on this for days now because it affects almost every person, in every developed country in the world. Banks are already in poor standing with the world’s government and people due to their action leading up to the 2008 financial crisis. This eliminates any trust or respect remaining for the banking and financial sector. The only bank to admit wrong doing is the British Bank, Barclay’s. The other banks that are a part of the Libor rate setting process are as follows Bank of America, Citi Bank, BTMU, Deutsche Bank, Credit Suisse, HBOS, HSBC, JPMorgan, Lloyds, Rabobank, RBC, RBS, UBS, West LB, and Norinchuckin. Barclays has already paid fines of $458 million dollars but the other banks could face up the 30% more after the completion of the investigation. This does not include the billions of dollars that they face from lawsuits for municipalities, investors, and any other people that lost money due to manipulation of the Libor rate. Morgan Stanley estimates that total liability could be up to $58 billion dollars when all said and done. The news story also had a corresponding web article....
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...How China's Black Monday could affect global economies By Ravender Sembhy August 24, 2015 14:11 BST After the Chinese stock market suffered its biggest one day loss since 2007, plummeting 8.5%, the country's media have dubbed today "Black Monday". The ripple effect has been felt across the globe, with indices nosediving one after the other. The FTSE 100 fell below the 6,000 mark for the first time since 2013, and Japan's Nikkei, the German DAX and France's CAC all followed suit in recording heavy losses. The Shanghai Composite lost gains made in 2015, plunging 8.5%. Why is this happening? Slowing growth in the world's second largest economy has been spooking investors since the beginning of the year, which has contributed to the loss. China is targeting growth of 7% in 2015, down from 7.4% in 2014, as the country attempts to move from an export-led economy to one more focused on consumer spending. However, there are now worries it will fail to hit forecasts and economic data come in weaker. Earlier in 2015, investors signalled their concern about the slowdown by embarking on a selling frenzy that wiped out more than 30% – some $3tn (£1.9tn, €2.7tn) – of China's equity market value in one month. The Chinese government has responded by injecting billions into blue chip stocks, permitting its state pension fund to invest in domestic shares for the first time and by devaluing its currency in a bid to boost exports. But none of these actions appears to have had the desired...
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...Financial statement of South Africa South Africa is a middle-income, emerging market with an abundant supply of natural resources; well-developed financial, legal, communications, energy, and transport sectors and a stock exchange that is the 16th largest in the world. Even though the country's modern infrastructure supports a relatively efficient distribution of goods to major urban centers throughout the region, unstable electricity supplies retard growth. The global financial crisis reduced commodity prices and world demand. GDP fell nearly 2% in 2009 but has recovered since then, albeit slowly with 2014 growth projected at about 2%. Unemployment, poverty, and inequality - among the highest in the world - remain a challenge. Official unemployment is at nearly 25% of the work force, and runs significantly higher among black youth. Eskom, the state-run power company, has built two new power stations and installed new power demand management programs to improve power grid reliability. Construction delays at two additional plants, however, mean South Africa is operating on a razor thin margin; economists judge that growth cannot exceed 3% until those plants come on line. South Africa's economic policy has focused on controlling inflation, however, the country has had significant budget deficits that restrict its ability to deal with pressing economic problems. The current government faces growing pressure from special interest groups to use state-owned enterprises to deliver basic...
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...department was extremely susceptible to a rise in LIBOR rates. Trading desks with LIBOR-dependent positions could be caught wrong-footed in a fast-moving interest rate environment, and a little help in keeping LIBOR nice and low at a certain level for a certain amount of time until the desk could unwind its position could have meant saving someone’s career or annual bonus. A wave of Libor-related prosecutions, led by a range of U.S. and European regulatory bodies, has led to several major settlements. All told, global banks have paid over $9 billion in fines, as of May 2015. More than one hundred traders or brokers have been fired or suspended, twenty-one have been charged, and several executives, including former Barclay’s CEO Bob Diamond and Rabobank CEO Piet Moerland, have been forced out. EU regulatory authorities settled their investigation into Barclays, Deutsche Bank, RBS, and Société Générale, fining the latter three banks a combined total of 1.7 billion euros, or over $2 billion. They were all found guilty of colluding to manipulate market rates between 2005 and 2008. In exchange for revealing the cartel to regulators, Barclay’s was not fined. U.S.-based JP Morgan Chase and Citigroup also became the first American institutions fined, with much smaller penalties (Kraten, 2010: 7) 4.5. EFFECTS OF LIBOR Libor scandal has eroded public trust in the marketplace. As the Wall Street Journal's Francesco Guerrera writes, Libor manipulation meant "trillions of dollars of financial instruments...
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...Executive Summary The executive summary below provides a detailed overview and financial analysis of Danone and Almarai and ‘Group D’ recommendation for investment. The global dairy industry is a highly competitive sector. The analysis of demand from 2002 to 2016 shows a cyclical trend. The demand slowed in last few years due to various factors such as global crisis, rise of milk price and production cost however the forecast of industry shows a positive growth rate of 4% by 2016. According to Rabobank’ market research, significant demand is expected in India (10% CAGR), China (7% CAGR), Middle East and North Africa (MENA, 4% CAGR), Asia (4% CAGR). Danone, the French Multinational, is a well-diversified company and has strong product portfolio and global reach. It is a leader in food and beverage industry and is present in over 140 countries. Over 60% revenues of Danone are generated from dairy products and outside Europe. Almarai on the other hand is a strong regional leader with 50% of revenue generated from dairy products and over 90% revenues generated in GCC market. Financial analysis was carried out for both firms using common-size balance sheet, income statement and cash flows statements. In balance sheet analysis of Danone, money market funds purchased during 2013 represent the main component in current assets and brands and goodwill represents majority of non-current asset. In comparison, inventory represents 48% of Almarai’s current assets and long term portion...
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...9-910-405 AUGUST 13, 2009 CHRISTOPHER A. BARTLETT Global Wine War 2009: New World versus Old “We have the people, expertise, technology and commitment to gain global preeminence for Australian wine by 2025. It will come by anticipating the market, influencing consumer demand, and building on our strategy of sustainable growth.” — Sam Toley, CEO of Australian Wine and Brandy Corporation. “By phasing out the buyback of excess wine and increasing incentives for farmers to uproot their vines, the EC reforms will only bring in the New World’s agro-industry model. We need to protect the age-old European model built on traditional vineyards.” — Jean-Louis Piton, Copa-Cogeca Farmers Association. In 2009, these two views reflected some of the very different sentiments unleashed by the fierce competitive battle raging between traditional wine makers and some new industry players as they fought for a share of the $230 billion global wine market. Many Old World wine producers—France, Italy, and Spain, for example—found themselves constrained by embedded wine-making traditions, restrictive industry regulations, and complex national and European Community legislation. This provided an opportunity for New World wine companies—from Australia, the United States, and Chile, for instance—to challenge the more established Old World producers by introducing innovations at every stage of the value chain. In the Beginning1 Grape growing and wine making have been human preoccupations at least since...
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...Roughly 4 billion people living in developing countries and emerging economies do not have access to financial services such as credit, savings and insurance. Formal financial intermediaries, such as commercial banks, usually refuse to serve poor households and micro-enterprises because of the high cost of small transactions, lack of traditional collateral, lack of basic requirements for financing and geographic isolation. By doing so, these institutions ignore the enormous potential in talents and entrepreneurship of this stratum of society. Providing access to financial services will stimulate the independence and self-development of poor households and micro-entrepreneurs. This will help not only to improve poor people’s economic condition, but also to provide a way to maintain or improve their quality of life in the face of uncertainty. Moreover, gaining access to financial services is a critical step in connecting the poor to a broader economic life and in building the confidence for them to play a role in the larger community. Some of this slowdown can be blamed on events elsewhere. Europe’s pain, for example, has spread far beyond its immediate neighbors. The European Union remains the biggest foreign market for many emerging economies, buying about 19% of China’s exports and 22% of South Africa’s. By increasing access to financial services for the poor segments of society, the financial sector can play an important role in alleviating poverty in developing countries....
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