Tag Archives | lending

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Getting under the Hood: Leveraged Lending and the 2014 SNC Review

In part one of this series, we noted that the 2014 SNC Review sample was heavily skewed toward leveraged loans and to criticized assets. This purposeful focus does not, in itself, undermine the report’s explicit findings (at least about the review sample) but it certainly hinders simple, drive-by use of cherry-picked elements of the Review to make […]

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There be monsters? Middle Market Leveraged Lending and the SNC Review

Six years past the onslaught of the Great Recession, a knot of on-lookers remains committed to specters and bogeymen in the leveraged loan market. Undeterred by contrary empirical evidence and low default rates, torchbearers have tried (thus far, in vain) to enumerate any swath of banks that required rescue due to leveraged lending to commercial and industrial operating […]

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Critical Elements of an Effective Leveraged Lending Platform

What does it take to be an effective middle-market leveraged lender? Are traditional lending models obsolete? Is this sector now the domain of non-bank debt investors? Whether you are a private equity investor, operating company, or co-lender, these questions can be pivotal to deal viability over the investment horizon. Finding out, mid-deal, that one or […]

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Commercial Banks and Leveraged Lending: Why, It’s a Day at the Beach!

While the death of commercial banks in the leveraged, sponsor-backed sector is a bit exaggerated – it’s tough to argue that the industry is not in the Intensive Care Unit. Recent reports from S&P Capital IQ show that U.S. banks’ share of leveraged lending in the middle market has fallen to 9% in 2013 – […]

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The Peril of Pytr Prynciple and the Bank Meeting

We received such fascinating feedback on our post on relationships in commercial banking being a double-edged sword (see, “The Most Expensive Word in Banking? ‘Relationship’”) that we wanted to capture it in a follow on piece. Based on many of the war stories we heard, the topic touched close to home for many. Most wondered […]

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The Most Expensive Word in Banking? “Relationship”

Commercial bankers, especially those in the core and lower middle market, face so many obstacles to growth and profitability – from a looming regulatory environment to nimble, creative non-bank competitors – that it’s a wonder some don’t throw their hands up in despair and go fishing. But there is hope for those willing to address […]

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Is LBO Lending Specialized?

“Ignorance more frequently begets confidence than does knowledge”. – Charles Darwin I am often asked whether middle market LBO lending is specialized. To a great extent, the answer is “yes”. Certainly, there are essential elements of transaction analysis, underwriting, and account management in middle-market leveraged deals that require a more sophisticated approach than is typically […]

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