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12janfeb

January/February 2012

Risk Management Issue
Vol. 10 No. 1
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FEATURES

Tales From a Gilded Age — Are We in a New Bubble? - Hugh Larratt-Smith wonders: How did pricing get back to pre-crisis bubble levels so quickly? In the following article, he draws a parallel between the maneuverings of financier Jay Gould during the gilded age of U.S. industry and commerce and the realities of today’s lending environment.
Cloud-Based Technology — Opportunities for Advanced Credit Monitoring Tools - The advent and advancement of Cloud technology has opened the door to major changes in the world of business credit, enhancement and collateral monitoring. We are barraged with a constant flow of new buzzwords, phrases and acronyms for everything trendy and exciting. It’s hard to keep up. Yet, Cloud computing and Business Processing as a Service present opportunities for considerable cost savings and efficiencies.
Testing Your Metal: Hedging to Manage Price Risk - Global metal markets have experienced profound changes over the past ten years, creating vast opportunity, as well as unparalleled challenges for both lenders and borrowers in the industry. To fully appreciate the evolution that has occurred and its impact upon the markets, one must look back in time to understand the changes that have occurred and what they portend for the future.
Interested in Dodging Social Media Bullets? - There are wonderful things to be said about Facebook, YouTube, Twitter and their many rivals. But, without careful management, they also have the potential to make a minor happenstance into a major problem, and a major problem into a life-threatening crisis. And that’s bad news for every business going through restructuring or reorganization, trying its darnedest to avoid those alternatives. The somewhat good news is that there are things a business can do to dodge some of the social media bullets.

COMPANY/EXECUTIVE PROFILE

Mike Maiorino & People’s United Business Capital: At Home In the Middle - With a seasoned team on board nimbly assembled in 90 days last summer, Mike Maiorino finds himself at home at People’s United Bank where he was tapped to launch People’s United Business Capital. While the model maybe “right down the middle” in terms of the broad spectrum of asset-finance companies, when it comes to customer’s and their financing needs, Maiorino shuns a “one size fits all” approach.

FROM ALL FACETS

TURNAROUND CORNER

As a Turnaround Takes Hold, CIT Rededicates Itself to Equipment Finance - The severe economic downturn of recent years has seen many equipment lenders leave the business or sharply curtail their activities, and CIT was no different, downsizing its Diversified Industries Group in 2007. Central to this strategy is the appointment of a senior CIT veteran, Belcastro, well-known both inside CIT, as well as throughout the asset-based finance industry, as a knowledgeable and experienced professional.

SPECIALTY LENDING SHOP

Sectors Offer a Mixed Bag of Opportunity - To launch the new year, we asked Rosenthal & Rosenthal’s James Occhiogrosso to take a look at borrower sectors that rely on factoring and asset-based financing in this, ABF Journal’s first ever Specialty Lending Forecast. While certain sectors offer opportunity, all require diligence and in some cases, patience.

BANKRUPTCY UPDATE

Skilled Nursing Facilities — Could 2012 Be the Sequel to 1999 ‘Slasher?’ - The year 1999 witnessed a rash of SNF bankruptcies following a major change in Medicare reimbursement when the Healthcare Financing Administration began to transition to a prospective payment system for SNF services. In the decade that followed, SNF operators experienced a period of relative stability, but it may have been the proverbial calm before the storm. Seismic shifts in funding sources, the consequences of a weakened economy from the Great Recession may soon produce another wave that could rock the industry.

LEGAL EYES

Protection Against Fiduciary Claims in a Sale or Merger Transaction - In the context of a sale or merger transaction, directors of the target entity are subject to fiduciary duties. These duties are subject to scrutiny, especially in the scenario where security holders do not equally share in the proceeds of the transaction. Careful preparation, planning and documentation can, however, significantly protect directors from claims of breach of their fiduciary duties.

FINALCUT

FinalCut: Phoenix Survey – Lenders Predict Trouble Ahead - ABF Journal illustrator, Jerry Gonzalez, offers a chilling interpretation of a top-ranked abfjournal.com news story.

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