Interview – So whom do you think ABSM – Treasury will be benefited from and who is the target audience for this publication? Why do you think this will help the readers?

This book will be helpful and useful to a wide spectrum of individuals and organizations. The highlights of this publication are relevant for the graduate business students, management consultants and non-financial managers who want a flavor of treasury and balance sheet management best practices. The contents of this book are slightly specialized and although the aforementioned audience can study the concepts, the aspiring CFOs and Treasurers can also expect to fill some gaps in their skill-set by perusing the script. I am sure the content will resonate with their experiences and either they can open a new window in their mind or can reaffirm their beliefs by reading about ABSM Treasury.

Interviewer – So what makes your publication unique compared to other publications in the field of Financial Management, Balance Sheet Analytics, Liquidity Risk and other similar topics.

Experiential learning is the best form of learning and teaching. There is no substitute for blood, sweat and tears. From what I have noticed in the book market, most publications in the domain of balance sheet are written from a mid-office or risk management background. Additionally, I have also read some rudimentary publications on the subject which are catering to absolute beginners. ABSM a Treasury perspective is a market driven, externally focused management book which takes into account the vagaries of markets, unpredictability of company’s future prospects and importance of leadership talent. These practicalities cannot be ignored by any aspiring Treasurer or CFO. These are important building blocks for any professional to imbibe as they embark on their career journey. ABSM a Treasury perspective is therefore less theoretical and unique read.

Interviewer – What are your views on the current state of Financial Markets and Balance Sheets of Companies in the context of historic quantitative easing by Central Banks globally?

Global markets have been floating on Central Bank liquidity for past 5 years. Only Central Banks and Fed will decide when this bull market of a century ends. Case in point being the US Fed – with $8 Trn of assets on their Balance sheet, they have gone through QE1 to QE4 since 2008 GFC. In fact, there has been a 50% rise in the Fed assets only after the 2020 Covid pandemic. With a Debt/ GDP ratio of 130% and Market Cap to GDP of greater than 200% there could not have been more ominous overvaluation signs based on past 100 years data. The current BEER ratio of > 1.25 in India also paints a similar story as global markets.

With global bond issuances in 2021 estimated at $ 25 Trn, the credit issuances are at record highs but don’t seem to suggest excesses in the market. However, the 2021 Structured Finance issuances of $600 Bn are likely to surpass the 2007 peak levels. Global M&A volumes of $6 Trn in 2021 much surpassing the previous 2007 peak of $4.9 Trn.

With tip toeing into a tapering program of US Fed by end of 2021 we could expect 2022 to be a year of healthy consolidation in markets. There seems to be a confluence of headwinds for global markets but not a perfect storm yet.