Treasury Hub Update - May 2020

This is the May edition of THE TREASURY HUB Banking and Treasury Markets Bulletin. Despite the ongoing pandemic, there has been a bounce back in equity markets and a settling down of the interest rate markets following last month's volatility.

EUR/GBP has also remained relatively stable for the month, however the decision on whether or not to extend the Brexit deadline date of 31 December 2020 will soon come into focus. FX volatility should therefore be accounted for in forecasts and budgets and it's management will increasingly be a key facet in the approval or otherwise of bank facilities and grant applications.

So, as mentioned in last month's bulletin, poor currency management will likely cause a “triple whammy”: lower profits, higher interest costs and tighter loan terms and conditions. We continue to focus on banking in Section 5 of the bulletin.

Please get in touch with our Corporate Finance team if we can be of any assistance.

The Treasury Hub - Banking and Treasury Report May 2020 can be downloaded here.

For any queries relating to this newsletter, please contact Chris Ball, Partner.

Chris Ball

Corporate Finance Partner

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