Red Boot LLC’s Post

🏦 ABN AMRO to wind down asset-based financing in UK and Germany ➡️ On 26 November ABN AMRO Bank N.V., one of the largest Dutch banks, announced its plans to wind down the international operations of its asset-based financing division by the end of 2026. 🌐 Instead, it will focus its efforts in Northwestern Europe and its finance and advisory services. 📰 After an internal review of the asset-based financing division’s activities, ABN AMRO said it will “materially reduce the [division’s] international footprint”, winding down non-strategic client portfolios in the UK and restructuring its operations in Germany. The bank expects the reorganisation to benefit the CET1 capital ratio and the return on equity by the time it is completed. 📖 Read the news with the link in the comments! #invoicing #factoring #finance

I would like to thank both Kat Hidalgo and Abhinav Ramnarayan for the excellent coverage of my views on the new areas for consumer lending markets (asset based finance) topic in Bloomberg. Assessing whether or not the bet will pay off private credit funds in an environment of rising unemployment and economic uncertainty. It was indeed a very insightful discussion. #PrivateCredit #Bloomberg #bnnbloomberg #ConsumerLending #CorporateLoans #FinancingRisks #FinancialMarkets #NonTraditionalFinancing #BankingIndustry #privatecreditfunds #AssetBasedFinance #privatedebt #portfoliodiversification #investmentopportunity #acquisitions #householdsbudget #privatedebt #europe #us #creditbooming #unemployment #economicuncertainty #traditionalfinancingvsprivatelending

It's encouraging to see a resurgence in private debt fund deal volume, with Deloitte's Private Debt Deal Tracker reporting 246 closed deals, the highest since late 2021. As competition intensifies for top-end mid-market assets, lenders are increasingly turning to the lower mid-market: At Altimapa Capital, we support borrowers, including those in lower mid-market, access institutional capital across UK, Europe and beyond. Whether you're seeking financing for a corporate project or looking to refinance existing assets, we source competitive rates and have a proven track record in handling complex financial needs. #capitalraising #investmentbanking #institutionalcapital #lowermidmarket

Asset-backed lending continues to grow among the largest global asset managers. The space includes both public and private opportunities. There is a case to be made that the public space is currently more attractive but both are growing in importance. In the U.S. the ABL market capitalization is over $11T in size which is larger than the corporate bond market. Canada still lags in the availability of public ABL options, so go global. Some key attributes include: Broader access to senior credits (AAA, AA, etc) Floating rate exposure Diversified (public securities) https://lnkd.in/ddDB3Pje

MDBs are under pressure to maximise their lending capacity and attract the private sector to help finance it. Two strategies have emerged for raising additional capital from hybrid securities without affecting treasured Triple A ratings https://lnkd.in/eJyKDsd2

Private Credit Apollo Snags $5 Billion From BNP to Expand Private Credit Bets : Marc Rowan’s ambitions to build a credit machine that rivals Wall Street banks : private credit investments — to generate $200 billion to $250 billion in annual volume in five years : $5 billion in fresh firepower from BNP Paribas SA as it looks to grow a key lending business, muscling deeper into turf once dominated by banks “This is one of – if not the – largest-ever, long-term private credit financings”. If securitizations follow, the companies will partner on them. Apollo has previously said that the Atlas securitization business could grow to become a $70 billion origination unit in the coming years : Bank commits funding for investment-grade, asset-backed deals : Financing will help Apollo’s new Atlas business fund assets

With the potential to deliver double-digit returns, European high yield structured credit has been a prime focus for investors. M&G Investments delve further into the individual dynamics. https://lnkd.in/eh82RehH

💰 A $30 Trillion Market?  Blackstone sees private credit going to grow into a $30 trillion market, which covers loans from credit cards to infrastructure projects.  📌 What is private credit?    It refers to the loans extended by private investors instead of through banks or the public debt market. The money is mainly lent to businesses and occasionally to individuals.    Investors can charge a premium as the loans typically have a higher risk profile. This market has grown steadily in recent years to under $2 trillion. 📌 Why such an ample opportunity?    Banks are becoming more selective of loans given the current high interest rate environment and heightened capital requirements. Meanwhile, institutional investors such as insurance companies are looking for returns from alternative investments.    So far, insurance companies have about 3% exposure to private credit. This can grow into 10% to 20%, according to Blackstone.    Many of such investments are into consumer loan portfolios, such as:    📍 Blackstone’s $1B purchase of credit card portfolio from Barclay US    📍 Blue Owl to buy $2B consumer loans from Upstart  🚨 The funding will support the origination of consumer loans, although the loan standards must be adhered to - in order to avoid the mistake in the mid-2000s.  Source: Bloomberg #consumercredit #riskmanagement #newcredit #privatecredit

Interesting times in the market as Private Credit continues to take centre stage in 2024 for banks, non bank lenders, institutional capital, credit funds and private equity. Whether it is setting up strategic funding partnerships, optimising your balance sheet, co-investments into lending platforms, debt continuation vehicles, loan portfolio sales, hybrid debt / equity investments or other alternatives to traditional fixed income investments we are seeing a lot of activity in this space and would be delighted to have a conversation with you around where we can work together to provide solutions to your objectives!! Publication in the link talks to our view on the European loan portfolio market, but with a focus on the growing trend in private credit https://lnkd.in/efrQayZr