iason’s Post

Together with Maria Dikeos of LSEG Data & Analytics and Stephen Beriau of Eclipse Business Capital, LLC I participated in an Secured Finance Network sponsored Webinar yesterday titled "By the Numbers: A Discussion on the Results of SFNet’s 2023 ABL Survey and Current ABL Market Trends". We discussed the broader debt markets in Q1 and early Q2. We also covered the private debt and asset based lending markets for both banks and non-bank participants. The webinar is free and not too late to sign up if you're interested. The link is https://lnkd.in/eUeNppfd

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.

**Ever wondered why lenders have stricter criteria for certain asset classes?** It's all about risk mitigation. When lenders loosen their guidelines to compete in niche markets, they risk significant losses if the portfolio underperforms. Requesting extra documentation like tax returns and financial statements isn't just bureaucracy—it's smart strategy. It gives lenders a clearer picture of a business's health, especially vital during turbulent economic times. Right now, delinquencies are surging, and many lenders are grappling with major collection challenges. Despite what the headlines might say, the financial sector faces unprecedented adversity. Lenders can't afford to be careless. They must be more vigilant than ever, particularly in markets prone to losses during economic slumps. #EquipmentFinancingSimplified

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

Q1 2024 couldn’t have been much different to Q1 2023. This was certainly true in the #securitiesmarkets. A decline in fees for fixed income assets and the lowest #short loan value across European equities seen for over a decade. To find out more details and to hear from two market #experts Jim Moroney and Michael Brooks from eSecLending register for our upcoming Q1 webinar below https://lnkd.in/ezQaBb9i

Not sure how your portfolio will weather a volatile market cycle? DebtX Analytics Stress testing will yield real answers and help you guide your strategic direction. We have better tools to evaluate potential risks to your loans via stress testing variables such as collateral values, cash flows, interest rates and market spreads. DebtX Analytics can stress loans using stored historical market bottoms, Federal scenarios, client-driven metrics, and more. Learn more about our loan valuation and stress testing solutions: https://lnkd.in/deetSZkw #stresstesting #debtxanalytics

The financial industry has always been dynamic, but the challenges we're seeing today feel particularly pressing. High loan-to-deposit ratios, reliance on CDs, and competition for core deposits are reshaping how banks and credit unions approach growth and sustainability. What's inspiring, though, is how resilient and innovative financial institutions are in navigating these challenges. It's not just about numbers - it's about building deeper relationships, serving communities, and finding smarter ways to create lasting impact. I'd love to hear from others in the industry: What strategies or approaches have been working well for you during these times? #BankingInnovation #FinancialIndustry #CoreDeposits #CommunityImpact

The private credit market’s expansion has been one of the most eye-catching stories on Wall Street since the pandemic. This special report explores the factors driving growth in the asset class. Download the full report 'Private credit: Trends, tech and future trajectory' for free here: https://zurl.co/hjwv #hedgefunds #privatecredit #report

What is a Money Market? Money market is a market where money or its equivalent can be traded. Money is a synonym for liquidity. It is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. Money Market is a part of the global financial market that deals with short-term lending and borrowing. Unlike a stock exchange, the money market is not a particular place, it is a System. • Mode of Transaction: The transactions may take place between different persons by telephone or fax without personal meeting. • Period of Funding: Funds are available in this market for periods ranging from a single day up to a year. Features of the Money Market Money Markets are often used as a solution to short-term cash needs by governments, large institutions, and sometimes individuals. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks, and financial institutions. There is no ‘physical money market.’Instead, it is an informal network of banks and traders. Trading in money markets is done over the counter and is wholesale.Major Players in the Money Market. The major players in the Money Market are Issuers, Intermediaries, and Lenders. Issuers include the Government, the Banks, the Financial Institutions and corporations. Lenders are the Mutual Funds, the Foreign Institutional Investors and banks. Banks play a dual role both as an issuers and lender. Between the issuers and lenders, there are intermediaries. Intermediaries include central banks and dealers. The issuers lend the money to the intermediaries and the intermediaries further forward the funds to the lenders. #fundaccounting #moneymarket #typesofmarket #investmentbanking #knowledge