Views on the ABL Market, the Value of IP, Silicon Valley Bank and More: The Top ABF Journal Articles in 2024

From views on the asset-based lending market and the value of intellectual property to the state of Silicon Valley Bank post-acquisition and the SBA’s Working Capital Pilot Program, these are the top 10 articles posted on ABF Journal through 2024:

1. Recovering and Evolving – Views on the Current Bank ABL Market: Higher rates, money tightening and interference from regulators following regional banking turmoil in 2023 have severely affected the banking industry. Bank leaders across the asset-based lending space sat down to discuss what it all means for the bank ABL sector.
2. The Value of Intellectual Property in Corporate Finance: Intellectual property (IP) is generally under-appreciated as a source of corporate value. IP-backed lending can give business owners access to debt capital that can be less expensive and dilutive than equity. It can offer both borrowers and lenders a new opportunity to unlock a valuable source of leverage.
3. The State of Silicon Valley Bank Today – Structured for Stabilization and Future Success: Silicon Valley Bank has been operating as a division of First Citizens Bank for nearly 18 months following its high-profile collapse in March 2023. ABF Journal caught up with Peter Bristow and Marc Cadieux for a post-acquisition update.
4. Inside The Small Business Administration’s New Working Capital Pilot Program: The SBA has launched a new Working Capital Pilot Program. Representatives from the SBA discuss the program’s origin and development, lender and borrower requirements and how the program will bring new lenders to the ABL market while complementing the product offerings of existing ABL and working capital lenders.
5. The Perishable Agricultural Commodities Act – Suggestions for a Grade A Loan: For secured lenders that provide financing to distributors, restaurants, grocery stores and other businesses that purchase fresh fruits and vegetables, understanding the intricacies of the Perishable Agricultural Commodities Act is critical to maintaining senior priority. The Perishable Agricultural Commodities Act (PACA) can dramatically alter a lender’s recovery, both prior to and after a borrower enters bankruptcy.
6. A Light That Never Goes Out – Sheila Smith’s Incredible Impact on Restructuring and Beyond: Sheila Smith approached every piece of her life with a verve and energy only matched by her signature vibrant style. Despite her recent passing, her ability to build relationships and educate and promote others will have a lasting positive impact on both the turnaround and restructuring community and the world at large.
7. Despite Successive Interest Rate Cuts, the $2.7 Trillion Commercial Real Estate Problem Isn’t Going Away: Most big commercial real estate firms, and lenders holding commercial property debt, are aware there’s a $2.7 trillion loan default problem looming. But like many businesses gradually heading for bankruptcy, owners — and indeed, banks — tend to be in denial about the approaching situation. They need to act now, before they’re faced with catastrophic loss.
8. Examining The Eligibility of Inventory as Collateral in Asset-Based Lending Agreements: Not all types of inventory are treated the same when being considered as collateral within a lending agreement. Neha Malhotra follows up a previous article on accounts receivable ineligibles to discuss types of ineligible inventory as well as how such inventory is appraised from a lending perspective.
9. Still Rising – Market Dynamics and Opportunities in the U.S. Private Credit Sector: The recent growth of the private credit market has only accelerated against a backdrop of credit tightening from traditional lenders. Maggie Arvedlund, CEO and managing director of private credit investment firm Turning Rock Partners, explores the ascent of non-sponsor backed private credit lending and opportunities for such lenders in the lower middle market.
10. A Primer on the Japan Reverse Carry Trade and Its Global Implications: As business leaders navigate the complexities of global finance, understanding the reverse carry trade implications from Japan and its potential ripple effects on world markets is crucial. This primer provides a comprehensive overview of the reverse carry trade, its current relevance to Japan and the compounded impact of a global margin call on trade, the economy and banking sectors.