Crystal L.’s Post

With financial markets hitting all-time highs and the "alpha-dogs" left only with "Beta" on the table, maybe it is time to remember "Preservation of Capital" as a primary goal. Regulators have warned about a lack of transparency around private loan valuations and potential liquidity mismatches over the last year or so, as the market has ballooned to $1.7 trillion in size and interest rates have remained high.

Cash has its place in all financial plans, but how much cash should you keep in the bank? And what happens when the market is under-performing? Here’s the argument for holding cash, and against it.

The common wisdom may be that falling short-term rates will ease funding pressures and eventually expand margins. But there's much more going on. Banks will see significant shifts on both sides of the balance sheet and must be nimble. Key decisions on loan repricing and refinancing of existing loans are on the horizon. In a special analysis Vinny Clevenger of Darling Consulting Group gives community bankers 5 key points for strategy. https://lnkd.in/e42bnBvz

"The biggest capital savings will come from changes to how banks will have to calculate potential losses from operational risks...banks had been pushing regulators to reduce the risk weights for fee income associated with lending services, such as investment banking." #economy #economics #economicoutlook #banks #banking #bankers #fed #federalreserve #fedpolicy #finance #basel #baseliii #investors #investments #investing

Private Capital is on the rise and will be the future as bank consolidation is coming. Traditional institutions will continue to focus on deposits and will shy away from fixed assets, especially as it pertains to soft collateral & soft costs. Companies that have always used their banks will now seek alternative non-bank lenders. OY6 is already guiding many groups in this arena, have a large ticket equipment item, a project, or questions surrounding the new capital markets - let's connect!

Certainly, here's your text refined for a formal business tone: It is imperative to recognize that banking institutions vary significantly in their lending practices, with each adhering to distinct credit evaluation criteria. The process of bank consolidation presents a unique opportunity for community bankers to access credit avenues that may not align with the credit standards of the resultant institution. A rejection from a bank necessitates meticulous examination to discern the underlying rationale behind the decision. Additionally, it warrants a thorough assessment of competitors' financial standing to identify potential alternatives that may better suit the desired credit requirements. Ultimately, securing approval for a credit request does not hinge upon conforming to a singular predefined criterion. Therefore, it is advisable to explore multiple options and exercise due diligence in selecting the most suitable financial partner.

With interest rates back to their long-term averages, now is a good time to review the yields you are earning on excess cash. Chances are you can do much better than leaving it in the bank! #CLA #Twealth

"The paper, titled "Shadow Always Touches the Feet: Implications of #Bank #Credit Lines to Non-Bank #Financial Intermediaries," notes that while most analysts have focused narrowly on bank balance sheets, banks also contribute credit to #realestate #investment trusts, a form of indirect lending to the commercial property sector. When accounting for this, bank exposure to commercial real estate #debt rises by about 40%. " https://lnkd.in/gS77svAx

Oh these risks have been increasing for some time now. "Remember the global financial crisis? Well, high-risk securities are back" "....16 years later, some experts believe new risks are emerging. And this time, they are linked to highly indebted companies backed by private equity firms, which are part of the growing but opaque portion of the financial system known as the shadow banking sector. Shadow banking refers to financial firms that face little to no regulation compared with traditional lenders, and includes businesses such as hedge funds, private credit and private equity funds.... ....“The private equity firms invest in companies that are almost failing, and in order to make these companies survive, they load them up with debt,” said Postel-Vinay. "These loans end up being repackaged as well, a little bit like the junk mortgages before the 2008 crisis.”..." https://lnkd.in/ewBCr5EA

Navigating the current credit landscape requires a meticulous eye for detail. With attractive yields available, especially when compared to declining money market rates, investors can find value in both public and private credit markets. However, tight spreads mean careful security selection is crucial to maximise returns. Read our full Q4 Credit Outlook now. https://ow.ly/P16650TE2FI #CreditOpportunities #InvestmentStrategy