Nordea On Your Mind

The Nordea On Your Mind team is out with a new report, and this time the authors are focusing on a topic on the minds of many these days: inflation.

• The return of inflation

• Podcast: Inflation – A revival we never wanted

• Optimising inflation, employment or both?

• Time for more humility and pragmatism from central banks

• How to measure inflation: From in-store collection to web scraping

Our Nordea On Your Mind team returns to the theme of corporate funding in their latest report, “The financial flak vest.”

• The financial flak vest
• Podcast: Party over for cheap and ample corporate funding
• Cash flow must be sufficiently good every year, and better in the good years
• A credit rating gives access to a very deep pool of capital
• The cost of flexibility is less than the cost of financial distress

Did you know that global costs for cybercrime are estimated to have reached USD 8tn annually? Corporates are in the firing line, facing a range of threats from different types of cybercriminals. Our Nordea On Your Mind team return to the theme in their latest report, “Cybersecurity II.”

• Nordea On Your Mind: Cybersecurity II
• Podcast: Cybercrime is a serious business risk, not an IT problem
• Cybersecurity starts with basic IT hygiene
• There is much to be done in cybersecurity
• Cybercriminals can attack through your connected fridge or lightbulb
• Protecting Nordea against script kiddies and true hackers

The Nordea On Your Mind team returns to a favourite topic: financial targets. They examine how companies’ approach to targets has changed in the aftermath of a global pandemic and amid turbulence from rising geopolitical tension, inflation and interest rates.

• Nordea On Your Mind: Crisis targets
• Podcast: Hitting targets in a more volatile world
• Having no targets sends a weak signal
• Financial targets show what ‘good’ looks like

Global listed corporates in recent years have persistently been spending less than in the past. In this issue of Nordea on Your Mind, we look at one driver that could turn the trend around and potentially revive capex: sustainability.

• ESG: A potential game changer for capex
• Podcast: Capex and ESG
• Volvo Cars: All-electric by 2030
• Wind – The lowest levellised cost of energy
   

As companies seek financing for initiatives that contribute to the green transition, project finance could serve as an important tool, according to the latest Nordea On Your Mind report "Project Finance".

• Project Finance: Potential help for getting to net zero
• Podcast: Project Finance
• Project finance has a role to play in a renewable energy investment supercycle
• Project finance to create bankability

The European Commission has made some changes to the implementation of Basel IV. However, the regulation will still be a gamechanger for both banks and corporate borrowers, according to Nordea On Your Mind.

• Basel IV: Back to basics

• Basel IV: Dumbing down the banks’ risk models

• Basel IV: Look beyond the average impact

• Transition rules unlikely to soften impact from Basel IV

How does a company's choice of capital structure affect its value? Does an overly conservative or overly risky balance sheet hurt valuation? Explore the findings from this report.

• The hunt for the right leverage

• Keeping the cash machine lean

• Capital structure should never be a constraint for profitable investments

• Podcast: Capital structure in the real world

Basel IV, or actually finalisation of Basel III, is a major overhaul of global banking regulation. It will change the playing field in banking, particularly for Nordic and European banks. Some of the biggest changes should be in lending to corporates. How can borrowers prepare and mitigate the impact?

• Corporate lending under Basel IV

• Podcast: Basel IV – A game changer for bank lending to corporates

• Basel IV: Unintended consequences of levelling the playing field

• Basel IV: A delicate act of balancing simplicity, comparability and risk sensitivity

• Basel IV is coming: What you need to know

In recent years, ESG has rapidly gone from being seen as a niche investment philosophy to a business necessity. In this report "ESG: Reaping the rewards", Nordea Thematics delves into the role of ESG ratings and their relationship to companies' financial performance.

• ESG: Reaping the rewards

• Podcast: ESG ratings – Welcome to the jungle

• Ask your shareholders which ESG yardstick to use

• Engage with rating providers to prepare for the inevitable ESG conversations

• Prioritise substance over form in your ESG work

Cryptocurrency prices have generally soared in recent years, fueling interest from retail and now some institutional investors. Are cryptocurrencies likely to become a mainstream payment option, and what can corporates do to prepare?

• Cryptocurrencies

• All you wanted to know but didn't want to ask about cryptocurrencies

• Cryptocurrency: Do your due diligence with extreme prejudice

• The case for a central bank digital currency varies by country

The pandemic sent many professionals to work from their home offices. Now, as vaccination rates rise and new hybrid ways of working take root, companies are reconsidering their needs around office space.

• The future of office space

• Tomorrow’s offices will be rigged for new ways of working

• The office will be like an espresso – less but stronger

• Omnichannel retail will require a revamp of both stores and offices

A company's ownership structure can impact its financial performance. So who are the ideal owners? Nordea's Thematics team has crunched the numbers in the latest Nordea On Your Mind report "Ideal Owners".

• The ideal owners for corporate financial performance

• Always long-term, always impatient

• Type of owner matters less than having the right management

• The mission is to be a strong owner, says Solidium CEO

• Podcast: The ideal owners for corporate financial performance

How do corporate borrowers benefit from having a credit rating? When is it worth the effort and expense?

• Podcast: The case for a credit rating

Nordea's Johan Trocmé, director of Thematic Research, and analyst Viktor Sonebäck take a look at an industry facing its third major shock in only 12 years, with a COVID-19-induced demand collapse adding to sustainability pressures and volatility from oil being used as a geopolitical weapon.

• Oil: Black gold or black hole?

• Podcast: Oil - Black gold or black hole?

Covid-19 has given an unprecedented shock to the world economy, as lockdowns caused sudden and sharp declines in demand. In the report "Coronavirus: Plan B" we are exploring how well corporates are equipped to face a more challenging 2021 and 2022 if consensus forecasts are too optimistic, and if there is a need for a contingency plan.

• Coronavirus: Plan B – Hope for the best, prepare for the worst

• Podcast: Coronavirus – Plan B

• Aviation: The extreme of the extremes

• Capital markets discount a V-shaped recovery from COVID-19

• New equity capital was a matter of ‘safety first’​

The first three industrial revolutions were propelled in turn by steam power, electric power and programmable logic. The rise of the internet, with connected humans, devices and factories, has set the scene for Industry 4.0

• Industry 4.0 – Evolution, revolution or something else?
• Podcast: Ever heard about Industry 4.0?
• Industry 4.0 is a business model revolution, not a technological revolution
• Industry 4.0 describes how companies will stay competitive in the digital era
• People and processes need to catch up with technology
• Usage-based business models require new payment solutions