Jill Cetina, CFA’s Post

We will see more banks posting losses in the coming months, which will spur further tightening. Making it difficult for companies to obtain the appropriate capital financing required to support growth. Green Zone Capital Advisors clients are comprised of private equity firms, portfolio companies, and privately held small businesses who see the value former commercial lenders bring to navigating their capital financing process so they can keep their own focus on business operations. We ensure our clients are receiving maximum availability on their credit lines and structured with the right terms to support their growth trajectory. We negotiate better rates & costs compared to managing the capital financing process yourself. We are very capable to managing credit facility sizes up to $100MM per client. #privateequity #capital #bank #creditfacility #ceo #cfo #smallbusiness https://lnkd.in/geDCwDPn

Wall Street banks are ramping up efforts to reclaim their position in debt-backed deals, facing off against private equity giants. After a slowdown due to interest rate hikes, banks are now diving back into leveraged finance, spurred by market recoveries and demand. Private credit is booming, with firms like KKR making waves in healthcare tech acquisitions. Stay tuned as the landscape evolves, with traditional banks and direct lenders vying for deals in a changing market. 💼 Read the full article here: https://lnkd.in/ef4M52-d #Finance #Deals #WallStreet #PrivateEquity

Banks have found another way to fight back after private lenders have grabbed ever larger pieces of the lucrative business of financing leveraged buyouts. Citigroup Inc. and Goldman Sachs Group Inc. are among Wall Street giants that served as matchmakers on recent transactions between smaller companies looking for loans and private lenders eager to provide financing. Their pitch to direct lenders boils down to this: we can use our vast network of corporate clients to help you find issuers that want financing, and take them through all the paperwork involved in getting a private loan, for a fee. It’s the latest step that big banks have taken to reclaim business their leveraged lending desks have lost. Historically the biggest buyouts would be funded with junk bonds as well as leveraged loans that were arranged by big banks then syndicated to a wide array of investors. Leveraged finance and related businesses generated about a third of Wall Street’s investment banking fees. But private lenders have been taking more of that business, forcing banks to consider other ways to get involved. In addition to advising direct lenders and smaller companies, firms including Wells Fargo & Co. and Barclays Plc have established formal partnerships with private credit firms to get a foothold in the market. In addition to setting aside a chunk of its own balance sheet to originate private credit deals, JPMorgan Chase & Co. has also been looking for partners.

𝐄𝐯𝐞𝐫 𝐰𝐨𝐧𝐝𝐞𝐫𝐞𝐝 𝐡𝐨𝐰 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐠𝐞𝐧𝐞𝐫𝐚𝐭𝐞 𝐚𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐢𝐧𝐜𝐨𝐦𝐞 𝐰𝐡𝐢𝐥𝐞 𝐡𝐨𝐥𝐝𝐢𝐧𝐠 𝐨𝐧𝐭𝐨 𝐭𝐡𝐞𝐢𝐫 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬? Enter 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐋𝐞𝐧𝐝𝐢𝐧𝐠 𝐚𝐧𝐝 𝐁𝐨𝐫𝐫𝐨𝐰𝐢𝐧𝐠 (𝐒𝐋𝐁) In simple terms, securities lending is when an owner of securities lends them to a third party with an agreement to buy them back at a future date 𝐋𝐞𝐠𝐚𝐥 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐟 (𝐒𝐋𝐁) 1️⃣ 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐨𝐟 𝐋𝐞𝐠𝐚𝐥 𝐓𝐢𝐭𝐥𝐞: When securities are lent, legal title passes from the lender to the borrower for the loan's duration. 2️⃣ 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧 𝐨𝐟 𝐄𝐧𝐭𝐢𝐭𝐥𝐞𝐦𝐞𝐧𝐭𝐬: Despite the transfer of legal title, lenders typically retain entitlements to income payments and benefits from corporate actions. Borrowers are usually required to pass on any benefits to the lender, either directly or through a lending agent. 3️⃣ 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐝 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝𝐬: Dividend payments during the loan period may be passed through to the lender. This arrangement, known as a manufactured dividend, can have taxation implications for both parties involved. 4️⃣ 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐨𝐟 𝐋𝐞𝐠𝐚𝐥 𝐓𝐢𝐭𝐥𝐞: While securities are on loan, the lender typically loses voting rights associated with those securities. 5️⃣ 𝐑𝐞𝐜𝐚𝐥𝐥 𝐨𝐟 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬: Despite losing voting rights, lenders often have the option to recall securities for voting purposes. This provision is usually included in standard securities lending agreements, allowing lenders to exercise their voting rights when necessary. 𝐀 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐥𝐞𝐧𝐝𝐢𝐧𝐠 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧 𝐦𝐢𝐠𝐡𝐭 𝐥𝐨𝐨𝐤 𝐥𝐢𝐤𝐞 𝐭𝐡𝐢𝐬: ➡ XYZ Inc. – company whose shares are trading at $100 per share. ➡ ABC Healthcare ETF - An ETF shareholder, owns 140,000 shares. ➡ A brokerage firm (Borrower) asks ABC Healthcare ETF to lend 1,000 shares for six months, expecting XYZ's stock to drop to $80. ➡ ABC Healthcare ETF (Lender) agrees, charging a 3% annualized fee and charges $102,000 in collateral. ➡ The brokerage firm (Borrower) sells the shares for $100,000. ➡ Four months later, XYZ shares fall to $90. The brokerage firm buys back the shares for $90,000, earning a $10,000 profit. ➡ The ABC Healthcare ETF receives $1,000 in interest, calculated at 3% per annum, along with the returns generated from investing the collateral in other instruments during the loan period. #Finance #Investment #SecuritiesLending #Borrowing #MarketInsights #InvestingStrategies #HedgeFunds #GlobalFinance #MarketLiquidity #SecuritiesTrading #WealthManagement #AssetManagement

#RolloverEquity can be a key component of getting a deal across the finish line. GF Data provides great insights into the M&A market trends and is hitting on a key one in this report by Association for Corporate Growth (ACG) about rollover equity to help bridge the gap of buyer and seller expectations. The other trend noted that we are seeing is a lower amount of #SrDebt in the capital structure. Combine the narrowing of rates between Sr. and Jr. capital and conservative bank underwriting, #privatecredit is offering a great solution to fund ownership transitions. #middlemarket #mezzanine debt #juniorcapital #acg

Dive into the risky wave of refinancing in the CLO market and its potential impacts on investors. Read our article here: https://lnkd.in/gcBTRXfR Key Points: - Refinancing Surge: Analyzing the recent surge in refinancing within the CLO market and what’s driving it. - Investor Risks: The increased risks investors face as they chase higher yields in this volatile environment. - Market Implications: How these trends might shape the future landscape of the CLO market and investor strategies. Share your thoughts about the refinancing wave in the CLO market in the comments below. Enhance your strategy with insights from martini.ai: https://lnkd.in/grbEbxeu #Finance #CLO #Investment #Refinancing #MarketTrends #martiniAI

Great take on the CMBS market right now. While much has changed in the securitized products space since '08 and the usage of space since the Pandemic, the is opportunity in the market. #cre #cmbs #realestateinvesting #commercialrealestate

After delivering a stunning 2023, collateralised loan obligations (CLOs) were once again one of the top performers in Q1. They continued their strong performance with tightening spreads and increased demand, especially from European investors. Aza Teeuwen Partner, Portfolio Management, looks at what has happened so far in the European CLO market and where the good pockets of value remain. https://okt.to/8xtMYr

Private Debt's next act - will it change the rules of the game in restructuring? My colleague Huw van Steenis has conducted a recent analysis which indicates that the private credit sector may be 50% larger than typically reported and is even about to catch another wave of growth. This development will likely also prompt private credit players to partner up with banks rather than be adversaries. We expect that this will also change the stakeholder structure and approach in restructurings: financing structures may become more complex and diverse, but we also may see new possibilities to find solutions for a sustainable restructuring of companies in distress. Read the full report here: https://lnkd.in/dxMtYFTZ #restructuring #turnaroundmanagement #impactdriven #turnaround

After delivering a stunning 2023, collateralised loan obligations (CLOs) were once again one of the top performers in Q1. They continued their strong performance with tightening spreads and increased demand, especially from European investors. Aza Teeuwen Partner, Portfolio Management, looks at what has happened so far in the European CLO market and where the good pockets of value remain. https://okt.to/4UIbcu