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January/February 2015

Risk Management
Vol. 13 No. 1
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TD Economics Forecast: Economic Growth Momentum Will Peak in 2015 - A strengthening labor force leading to stronger consumer spending and gradual housing market gains, combined with a tempered tightening of Fed monetary policy to preserve the burgeoning economic expansion mean the pieces are in place for the economy to grow by 2.9% in 2015, according to a forecast by James Marple, TD Bank Group senior economist.
Structuring Unitranche Transactions: A Prudent Approach to Drafting Agreements - Nutter McClennen & Fish attorneys Philip R. Rosenblatt and John G. Loughnane discuss the uncertainty lenders may face when involved in a unitranche transaction. Since the unitranche model has not been thoroughly tested in court, they caution that when times get tough, lender parties will need the benefit of a well-crafted agreement—one that helps reach a solution instead of inadvertently accelerating a troubled situation.
Anatomy of a Fraud: Playing Defense to Minimize Losses - Joseph Iannuccilli, founder and CEO of Sound Shore Financial, recounts a memorable fraud uncovered by his field examination firm, and illuminates why a field exam is key to avoiding or minimizing loan losses for a lender. In this case, the lender noticed availability tightening, receivable turnover dramatically increasing and the loan balance rising.
Disposition Experience… Driving the Trading Value of Assets - Kenneth S. Frieze, CEO of Gordon Brothers Group, examines risk factors associated with underwriting new loans and recovering on those in distress. He notes that “getting it right out of the gate” requires a deep understanding of the trading value of assets, and asserts that nothing can substitute for disposition experience.
CCAR Regulations: Dissecting the New Requirements for Banking Institutions - A byproduct of the 2008 financial crisis, Comprehensive Capital Analysis and Review regulations grew out of the federal government’s need to safeguard the nation’s banking system from another financial collapse. AxiomSL SVP Rob Lee explains the fundamental requirements of CCAR, noting that institutional stress tests and data collections are here to stay.


Strategic Acquisition to Drive Profits: MB Business Capital’s Michael Sharkey Sees Bright Future for Rebranded ABL - In this Q&A with Michael Sharkey, the president of MB Business Capital discusses plans for the newly rebranded commercial bank, formerly Cole Taylor Business Capital, following MB Financial’s acquisition of Taylor Capital Group in August 2014. Sharkey aims to steer MB Business Capital toward becoming one of the country’s top ABLs.



Selling a Distressed Company: Creating an Expectation of Achieving a ‘Best Possible’ Outcome - Ravinia Capital Founder Tom Goldblatt provides insight into selling a troubled company, explaining why a series of thoughtful considerations must be put forth and followed before there can be any realistic expectation of achieving a “best possible” outcome.


DSRIP Program: Opportunities for Healthcare…Challenges for Lenders - Claudia Gourdon, CMO at Healthcare Finance Group, discusses the DSRIP program, which continues to evolve healthcare throughout the country. She stresses that lenders should educate themselves on the federal initiative in order to take advantage of potential opportunities and avert obstacles in a shifting healthcare marketplace.


Post-Petition Interest: Going for Checkmate in Contested Chapter 11 Cases - For seasoned lenders and their counsel, contested Chapter 11 cases can require the careful strategy and tactics employed during a chess game. Richard A. Robinson, partner at Reed Smith, explores why actions taken early in a case can have implications in the endgame. Importantly, securing a position on value too soon may result in significant losses.


FinalCut: Alternative Capital Providers Fill Gap Left by Big Banks - ABF Journal illustrator Jerry Gonzalez provides his take on Old Hill Partners’ commentary, which states alternative capital providers, including ABLs, are filling an important void for smaller companies left by larger financial institutions.

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