Goodwin’s Post

Video Short | What is Private Debt? In this clip from the 2024 Pinnacle Insights Series, Graham McNamara a managing partner at Metrics Credit Partners, explains how as Australia's leading and largest non-bank lender, Metrics provides clients exposure to an asset class that has traditionally been dominated by big banks. Graham's full presentation can be viewed here: https://lnkd.in/gYip4qUN More about opportunities to invest with Metrics: https://metrics.com.au/ #privatedebt #privatecredit #privatemarkets #investing #PinnacleInsights

In this commentary piece, Mark Posniak, European Lending Director, talks about how the European real estate financing landscape has shifted significantly towards private debt, as traditional bank lending in the mid-market sector declines. Exclusive to React News, Mark’s comments on how this shift is driven by the rise of non-bank lenders offering more flexible and innovative funding options as well as regulatory changes. With investors drawn to real estate debt for its asset-backed security and yield certainty, several challenges present strong opportunities for development and lending. These include outdated housing stocks, demographic changes, and a lack of supply of new homes, all exacerbated by inefficient planning systems. Maslow Capital, part of Arrow Lending Opportunities, recently reached a significant milestone, funding in excess of £5 billion of developments and delivering more than 17,800 units across 258 projects without any credit losses of capital, interest, and fees. 

An interesting article below from the European Lending Director at Arrow Global Group, Mark Posniak on the innovative real estate funding options in the current market, including the Maslow Capital team. #realestatefinance #realestate #fundingsolutions

😱 An accident waiting to happen! Deferring interest just adds more debt to the existing leverage, increasing interest costs through the compounding effect. To agree to this you have to believe that the borrower, who obviously can’t make interest payments, will grow its business enough or cut costs enough to start paying. If you believe rates are going to be cut in 2024 then you also believe in a business slowdown or recession. If you don’t then back to sufficient cost cuts and growth to allow for repayment. Sounds to me like rolling the dice… “In a recent twist, Wall Street banks including JPMorgan Chase & Co. are now trying to pave the way for PIK to become common in leveraged loans. While selling new debt with that feature is still a bridge too far for that market, bankers are hoping that loan investors will accept PIK payments for existing loans where the borrower wants to defer payments, known as amend and extend deals.”

The corporate debt market is offering borrowers a buffet of options in 2024. While #syndicatedloans are tempting with attractive refinancing rates, some borrowers, particularly smaller or riskier ones, are drawn to the flexibility and control of #privatecredit lenders. This allows them to customize loan structures and avoid the uncertainties of syndication. The future looks competitive, with both markets vying for borrowers based on their specific needs. Source: https://lnkd.in/gb6b3wxh

Today's Headlines from ABL Advisor's News include: UMB Bank and HTLF, Wintrust Financial Corporation, LSQ, Bank of America, Golub Capital, Moritt Hock & Hamroff LLP, Monroe Capital LLC, and NXT Capital - Read the full ABL Advisor Daily eNewsletter here: https://lnkd.in/em5hm87K #assetbasedlending #termloans #banking #bankingnews #banks #commercialfinance #privateequity #privatedebt #privatecredit #lending #nonbanklenders #corporatefinance #loans #financeandeconomy

At today’s CLO panel we discussed opportunities and challenges in the European loan market, relative value dynamics, the impact of the private debt market on loan issuance & defaults, and much more. The CLO market continues to grow and demonstrate its resilience as an asset class. Thanks to S&P Global and Rebecca Mun, CFA for hosting the panel and fellow panellists Michelle Manuel, Roger Coyle and Sandeep Chana for an engaging conversation.   #privatecredit #leveragedloans #cloinvesting