CVC Credit’s Post

The use of bi-merge credit reporting will occur simultaneously with the implementation of new credit score model requirements for single-family loans acquired by Fannie Mae and Freddie Mac. 

https://lnkd.in/eMsWKZn3 Is your loan portfolio management strategy addressing potential risks? Our latest article discusses how external consultants like NYC Advisors, LLC assist lenders in mitigating asset-based lending risks and supporting distressed borrowers. Read how our approach can help improve your portfolio performance.    #lending #assetbasedlending #ExternalConsultants #loanportfolio #businessloans

A few clients / prospective clients sent me this link yesterday asking for my reaction / advice. Since I had my thoughts drafted up anyway, I thought I would share them here: 1) The concept of "average" is not a great way to compare these two markets, although it is the only way that FT is able to make a comparison. The "average" borrower in the syndicated markets, particularly right now, is significantly larger, higher-rated, and more well known as an issuer than the "average" borrower in the private credit markets. The "average" private credit borrower may also have higher leverage / lower FCCR than the "average" syndicated borrower. The like-for-like spread between those two markets (ie same borrower in each market at the same point in time) is more difficult to compare because most firms don't have that data. We track 1000s of data points, and we only have a few that we can use on this basis, suggesting more like 100bps difference in spread on average. 2) Spread is only part of the story. There are dozens of other relevant / meaningful terms in a credit agreement. 3) That said, make no mistake, the private credit markets are **almost** always going to be more expensive than a syndicated loan for the same borrower. The primary reason (although there are other reasons) is due to the liquidity of the syndicated markets. The loans are tradable, so the return demanded by investors is lower. 4) I have made the comment that private credit has made permanent market share gains, and I still believe that to be true. That said, there will be shifts at various points in time in favor of the syndicated markets. This is one of those moments and it's unclear how long it may last. #privatecredit #privateequity https://lnkd.in/ervHHKKA

Expanding #commercial and #industrial (C&I) loans will become the focus for banks in the coming year as regional lenders continue to supercharge their asset base, giving #financial executives more options to fund and expand operations into 2025. https://bit.ly/4fjacNZ

There's never been a better time to invest in #rentalproperty! We've lowered our rates AND fees to make our #DSCR loans among the most competitive in the marketplace. Check out our latest blog post below for details. https://lnkd.in/e-K3Q7Aj #directprivatelender #realestateinvesting #rentalpropertyloan #DSCRloan #investmentpropertyloan #buyandhold #fixandrent

https://lnkd.in/egmh3CA4 Are you preparing for your next loan portfolio review? In my latest article, I share how we, at NYC Advisors, LLC, assist lenders in mitigating asset-based lending risks and supporting distressed borrowers. Read how our approach can help improve your portfolio performance.    #lending #assetbasedlending #ExternalConsultants #loanportfolio #businessloans

“The ratings company on Monday reduced its outlook for direct lending funds managed respectively by BlackRock Inc., KKR & Co. alongside FS Investments and Oaktree Capital Management, lowering them to negative from stable. The three publicly traded business development companies, with a combined total of more than $20 billion in assets, each increased the number of loans on non-accrual status, meaning they’re in danger of losing money on those investments. (…) For FS KKR Capital Corp. and Oaktree Specialty Lending Corp., the dollar amount of non-accrual loans more than doubled in the fourth quarter, to 6.4% and 4.5% of the portfolio respectively, well outside Moody’s median of about 0.4% for BDC peers at the end of 2023. The FS KKR and Oaktree funds’s shares have dropped since disclosing their deteriorating portfolios in February. BlackRock TCP Capital Corp. saw a jump in non-accruals to 2.2% from 1.2%, Moody’s said. Its shares have traded down about 9% since the company’s results in February. Oaktree’s largest non-accrual was a $47 million loan to Thrasio LLC, a seller of goods online, that counts Bain Capital, Blackrock Inc., Goldman Sachs Group Inc., HPS Investment Partners and Monroe Capital among its lenders, according to securities filings.”

Interesting article on high end asset lending we were pleased to provide some comment and content for

Despite the RBI's directive to JM Financial Products Ltd (JMFPL) to stop financing against shares and debentures and SEBI's interim ex-parte order preventing JMFL from acting as a lead manager for any public issue of debt security, one CRA informed an investor that JMFPL's credit rating remained unaffected. The group has 16 subsidiaries and associate companies. Presently, JM Financial Services Limited NCDL ratings are AA/Stable by CRISIL and ICRA, JM FINANCIAL PRODUCTS LTD NCDL ratings are AA/Stable by CRISIL and ICRA, JM FINANCIAL ASSET RECONSTRUCTION CO LTD NCD is with AA- /Stable by CRISIL. JM FINANCIAL CREDIT SOLUTIONS LTD NCD is with AA /Stable by ICRA and India Rating JM FINANCIAL HOME LOANS LTD NCD is rated AA /Stable by CRISIL and ICIRA. JM FINANCIAL LTD NCD is with AA /Stable by ICRA. Question. One: RBI and SEBI have only recently identified issues with this particular NBFC, while other NBFCs engaged in similar businesses fully comply with the regulations. This NBFC's typical activities include equity capital markets, lending, advisory, private equity syndication, private wealth management, home loans, MSME lending, alternative and distressed credit, and asset management. Despite being involved in these various activities, this NBFC fully complies with the regulations. Two: Can we trust the information provided by CRA that there has been no change in the credit quality of therese NBFC?  

Are you tired of avoiding the complexities of repurchase requests? The Federal Housing Finance Agency (FHFA) has introduced a new alternative. Starting Q1 2025, approved lenders can opt for a fee-based solution that helps you avoid the hassle and costs associated with loan repurchases. With this new policy, it’s all about incentivizing high-quality loans and reducing loan defects. Say goodbye to the time-consuming rebuttal processes and hello to streamlined efficiency. CLARIFIRE® has the visibility into critical milestones to keep repurchase out of the picture. Read our latest blog on how our automation will mitigate loan defects before they happen, and if needed, use the new repurchase alternatives effectively. #RepurchaseAlternatives #FHFA #CLARIFIRE #WorkflowAutomation https://bit.ly/4euGcOs