Looking back to an editorial I wrote at the beginning of 2010 reminds me that there was an element of very cautious optimism about the year ahead. Was that justified? Well, if there was ever a financial and business year that resembled the proverbial ‘curate’s egg’ then 2010 has been it.
Financial markets have had their ups and downs – would you have wanted to be an OECD government bond trader in 2010? – and there is a lifting of the regulatory fog, even if I’m not sure that all the regulators’ efforts will be necessarily cheered by treasurers or any consumers of financial services for that matter. The ACT and the EACT remain concerned about OTC derivatives, hedge accounting and other domestic and international regulatory proposals. All is not ‘doom and gloom’ however. The bond markets for investment grade and high yield issuers remain good sources of capital (if occasionally skittish) and equity markets have been positive too. Bank lending however remains challenging and, in the UK at least, very tough for mid caps and SMEs without security to offer (and even then with a haircut). Evidence suggests business borrowing is as tough in most other economies, too. Politically too there has been great change: what price the UK Coalition Government – and what price it surviving six months? What price the drubbing for President Obama in the mid-Terms? On balance, however, the world’s
political systems have coped with difficult austerity economics in the West and continued – if patchy – growth in developing markets.
Judging by the nominations for the Treasurer’s Deals of the Year Awards, treasurers have been inventive, innovative and ready to take on the increasing complexity of corporate financial management. Unlike Napoleon, many a corporate CFO has benefited from good rather than lucky treasury management.
And what of the ACT? Well, 2010 may turn out as a record year for us in terms of magazines and books published, events and conferences run across the globe and the numbers of students working on ACT qualifications and attending training courses. In particular the continuing growth of the ACT Middle East – supported by the soon-to-be- elaunched Middle East Treasurer (nee Supplement) – is a validation that the ACT is saying the right things to the right people at the right time.
So was I justified in my optimism? I’d like to think so and would want to believe that 2011 will be positive also. Whatever the outcome, the team at The Treasurer would like to wish all our readers , advertisers and contributors a very merry Christmas and happy and prosperous New Year!
PETER MATZA
HEAD OF PUBLISHING
