Description of the activity and instructions New York Financial Services, a company dedicated to the automotive financia

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Description of the activity andinstructions
New York Financial Services, a company dedicated to theautomotive financial services sector, has more than 40 years ofexperience in the U.S. market. It is an independent company thatguarantees nationwide service coverage and offers financialformulas and services for the purchase of all types of vehicles:personal, commercial and industrial.
New York Financial Services offers a personal financing planadapted to the needs of each client, both for individuals andcompanies: financing, leasing, renting and different combinationsof added services that can be chosen. In other words, New YorkFinancial Services acts as the sole interlocutor for theacquisition and financing of a car.
The finance company also offers a specialized service in vehiclefleet management and maintenance, with tailor-made formulas andmodular services for companies, and guarantees, through officialservices, the maximum care of automobiles.
Despite being a sector that is usually characterized by highcash positions, during the recession, the drop in activity and highdefault ratios led to the closure of many financial companies. NewYork Financial Services was able to resist thanks to a capitalincrease process and a restructuring of its costs, mainly on thepersonnel expense side.
At present, the company has a high volume of cash on hand,around USD 30 million, given the good results of its last fewyears. Only a negative change in the current macroeconomic scenariocould change the company's cash position.
Despite the good omens for the future, they do not rule out thepossibility that, should some latent elements of instabilitymaterialize (due to geopolitical tensions and uncertainties aboutworld growth), there could be a significant reduction in theavailability of this cash, which could, in the worst-case scenario,be as low as USD 10 million.
The Company's Board of Directors has asked its Chief FinancialOfficer for a report on how to distribute such cash or liquiditysurpluses in different alternatives of financial products andassets, as well as to evaluate the time horizon of suchinvestments. All this taking into account the conditions imposed bythe Board of Directors regarding liquidity management, which willbe given later.
In this sense, and after analyzing several financial investmentalternatives, it obtains from the main banking entities with whichit operates the following proposals and prices (all interest ratesare in nominal annual rates) for various investmentinstruments:
It is not necessary to specify aspecific type of stock, but in the case of choosing to invest inequities, what amount would be allocated and on what type accordingto its beta.
Maximum length and format
3 pages, Calibri 12 font and 1.5 line spacing. In case of aPowerPoint presentation, 6 slides. In both cases, the cover page isnot counted.
Assessment criteria
According to the quotations obtained, a decision must be made onhow to manage liquidity, which investment portfolio to make (inwhich instruments to invest, what nominal amount of the 30 millionand at what maturity) and the reasoning behind the choice, knowingthat the company's Board of Directors has established some criteriafor liquidity management that are fundamental for the CFO'sdecision making.