Category: Industry Related

Brave New World — Community Banks & Credit Unions Enter Syndication Market

Regular ABF Journal contributor Jeffrey Wurst was puzzled by a recent news announcement that smaller institutions such as community banks and credit unions have shown up as participants in large transactions facilitated by web-based portals. In this article, Wurst tries to imagine what would happen if such a deal defaulted or worse yet, with a complete breakdown of the facility, how all the participants would deal with each other.

Volatility in Collateral Values: Using Best Practices Protects Against Long-Term Shifts

GB Credit Partners CEO Patrick Dalton examines best practices asset-based lenders should bear in mind in order to protect themselves against long-term shifts in collateral values. By preparing for ongoing volatility, lenders can avoid the trap of placing too much focus on current collateral values and strengthen their ability to manage risk over the full life of a loan.

Rising Tide of Liquidity Lifting All Boats… As Regulatory Environment Evolves, ABL Growth in Europe Will Accelerate

Trimingham’s Hugh Larrett-Smith traces our asset-based lending roots back to the late 1800s and early 1900s when Paul Warburg was a transatlantic ABL “colossus.” Since then he sees an increasing willingness amongst UK and some European participants to work together towards the dream of achieving a true Pan-European syndicated loan market.

Downturn Plus Four Years — State of the Capital Markets

Contributing editor Howard Brod Brownstein talks to five leading ABL capital markets players about market conditions now that the official end of the downturn is four years behind us. All agree that market conditions are extremely competitive — comparable to before the financial downturn — and that this trend will continue for the foreseeable future.

2013 ABL Volume Weighed Down by Refinancings

At just over $57 billion, Q1/13-Q3/13 ABL volume is comparable to the same period last year. However, less than 21% of ABL lending this year represents new loan assets. In a trend consistent with that of the broader leveraged loan market, lending during both years was heavily weighted toward refinancings, as issuers push out maturities and reduce spreads on existing credits.