Category: Industry Related

2010 Mid-Year Marketplace Survey

For the third year in a row, ABF Journal polled senior lenders from leading asset-based lending shops. And while last year, survey participants reported the somber beat of an economy in recession persisted, the sentiment seems to have sweetened in the time that has passed.

Poised to Take the Plunge

Each year at this time, we at ABF Journal like to check in with leading asset-based lenders for a review of the year that’s been and a look forward to the one ahead. It became clear that we are on the brink of something promising as we push further into 2010; but with lenders and borrowers still testing the waters, it’s not entirely clear when they’ll take the plunge. What seems fairly certain, however, is that when they do, they may not dive as deep as they once did.

While ABL Tapers Off in Q4/09, Lenders Expect an Active 2010

Asset-based lending got off to a tepid start in 2009 and gained momentum part way through the year, only to see issuance taper off by year-end. At $8.55 billion, Q4/09 issuance, while up 45% over Q4/09, was off 15% from Q3/09 levels, to close out the year with the lowest quarterly issuance since the end of 2008. The softness was disappointing and arguably a bit of a surprise.

Balancing Opportunity and Risk

This year promises to be among the most challenging in memory for asset-based lenders. More than at any other time, lenders will face competing pressures to open up the spigot to meet pent up market demand for financing, while simultaneously confronting internal and external pressures to limit exposure and risk. Adding to the impetus is the recent White House initiative to leverage banks into aiding small businesses through increased lending.