Editorial

A digital world

In a reflection of how data, the critical raw material for producing digital products and services, is increasingly shaping corporate treasury, two features in this edition focus on the new corporate gold, set to shape strategies and investment in the future.

Our Insight & Analysis article explores how nation states which have always protected their physical borders are now seeking to define and protect their digital sovereignty. This means putting a fence around the production, storage and flow of data to assert their economic interests and bolster cybersecurity.

The issue has implications for treasurers: cash and liquidity management, for example, is essentially data that is travelling across borders. And so are emails and Zoom calls where digital tools are facilitating the flow of data to other jurisdictions. Expect implications for taxation, as well as an additional legal and compliance burden that comes with more data governance rules.

Our second data focus homes in on sustainability, exploring how efforts by data centres, the guardians and stores of corporate data, are trying to limit carbon emissions and water use by creating economies of scale, plugging into renewables and equipment efficiencies. But a lack of awareness that the cloud has emissions, and exponential growth in the sector is hindering progress.

Our Question Answered delves into why it’s a good time to issue corporate debt and explores some of the interesting trends shaping the market. Like the fact finance teams at high-yield issuers should make time to host investor roadshows in a marked change from previous years when the hunt for yield made debt from more risky companies easier to sell.

Sticking with funding, we explore why the IPO market is still moribund and if treasury will listen to London’s calling. We explore whether London can restore its allure as an IPO destination and if the IPO market, which has just experienced one of the worst years in its modern history, is set to benefit from positive economic indicators.

This edition offers ever-popular insights on netting and pooling, and explains why treasurers still have much to gain from centralising exposures and maximising cash utilisation. We also explore why cash management remains high on the agenda for treasurers in the Middle East where budgetary constraints arising from geopolitical tensions are making it more critical to demonstrate the ROI on technology solutions.

Our Corporate View features an interview with SAP’s Steffen Diel who discusses agile transformation and the importance of intelligent decision making. Finally, read on for Philomel Pena’s, Director, UC Treasury at University of California, inspiring and personal career advice in this edition’s Women in Treasury feature.