Private Funds CFO’s Post

Continued signs of change in private credit. Although JPM is a bank, they have a well established alternatives platform, including some private credit. While some banks (including JPM) are taking a partnership approach with established private credit managers, this would be more of an acquisition of private credit by a regulated institution, which introduces potential regulatory issues for the acquired direct lender. https://lnkd.in/dmxSCxC9 #privatecredit #privateequity

“Switzerland’s second-biggest bank, Julius Baer, said it pulled in more than SFr9.2bn ($10.6bn) in new money from clients following the near-collapse of rival Credit Suisse and its takeover by UBS in March — a trend it expects to continue in the coming months.” #privatebanking #wealthmanagement #uhnwi #assetmanagement #switzerland #banking

The capital build (via equity increase and RWA shrinkage) adds to the tailwinds propelling private credit. #bloomberg reported yesterday that #jpmorgan is seeking a private credit partner to fund deals where JPM clients presumably do not want to tap #leveragedloans and #highyieldbonds and instead utilize private credit (perhaps with the credit fund capitalized with JPM HNW clients).

As a sort of minor followup to my post about 650 billion dollars in unrealized bond market losses in the banking industry, this bank failure hit the news today. Interesting to me is how all of this is based on speculation - these #investors are essentially #speculators, invest based on best return based on certain assumptions about the future (in these case - some sort of stability in interest rates?). Guess/predict/assume wrong, you lose. (There are of course sophisticated ways to offset that risk, but the basic point remains). #REO #FORECLOSURE #bankingindustry #realestateadvice #realestatemarketing #realestateexpert #reolistings #reoagent #NRBA https://lnkd.in/evnv4vUi

How might the increasing role of Wall Street banks as intermediaries between smaller companies and private lenders impact the dynamics of the leveraged lending market in the long term, particularly in terms of risk management, fee structures, and overall market competitiveness? By providing advisory services instead of direct lending, banks mitigate risk and capitalize on fee-based revenue streams amid a downturn in new buyout activities. Read more in the article below: https://lnkd.in/eQTdBKZ9 #investmentbanking #privatecredit #privatedebt #leveragedlending

If you’re a bank treasurer or liquidity manager focused on deposits, sweep programs are likely on your radar or already part of your funding mix. An insured deposit program, also known as an FDIC sweep program, is a liquid alternative overnight investment. We cover how sweep programs work and the benefits to your bank in our blog.

If you’re a bank treasurer or liquidity manager focused on deposits, sweep programs are likely on your radar or already part of your funding mix. An insured deposit program, also known as an FDIC sweep program, is a liquid alternative overnight investment. We cover how sweep programs work and the benefits to your bank in our blog.

NY Community Bank surprise. I hope this isn't the start of another banking issue. Now this is part of the larger Signature bank acquisition, so there is some noise here in their earnings that just caught the market off guard. But worth watching. You would think the rise in provisions was more tied to Signature's loans vs NYCB. Still, that provision miss is not immaterial. "New York Community Bancorp, the regional lender that purchased deposits from Signature Bank last year, fell a record 45% after reporting a surprise loss for the fourth quarter and a cut to its dividend." "The bank lowered its quarterly payout to shareholders to 5 cents. Analysts had predicted the dividend would remain at 17 cents. A worsening credit outlook contributed to the unexpected loss, as the company boosted its loan-loss provision more than expected." "The purchase of Signature Bank's deposits moved New York Community Bancorp into a regulatory category that requires additional capital levels. The company said that was responsible for the dividend cut and the boost to its provision for loan losses. The provision was $552 million, compared with analysts' estimates of just $45 million." "Management had previously said asset quality was strong, so "something has clearly changed in their tone," #banking #credit #lending #banks #creditunions #earnings #CECL https://lnkd.in/g39Zf8WY

As predicted only Blackrock and JPM made profits this quarter. Infact JPM has become the only bank to survive from 2008 crisis. Others like citi and bank of America have failed but still run by incompetent people who have no idea how to turn around, clean the Balancesheet, fix the regulatory issues, hire quality people and pay them better than market. Unfortunately, both citi and Bank of America have become GM and Ford of banking industry who is wasting billions of taxpayers money given in 2008 to save them from the blunders they made by giving sub prime mortgages. It’s high time both banks are either closed or taken over by JPM or Goldman. Citi and BOA CEO and CFO always have excuses not to make money for now almost 16 years, stock has remained at $4. https://lnkd.in/gXGhnR-a

Pepper Insights Big Banks Dive Headfirst into Private Credit Market Goldman Sachs, Citigroup, and other banking giants are ramping up their private credit offerings. Why the excitement? 1) Higher returns: Private credit offers potentially higher returns than traditional loans 2) Fee bonanza: Banks can manage investor funds in private credit deals, generating fees 3) Client retention: This strategy helps banks keep clients happy and prevent them from going elsewhere Some reports mention potential risks, but let's face it, every investment has its considerations. Here, experienced banks are strategically entering a growing market. What are your thoughts? Is this a promising new chapter for big banks? #PrivateCredit #InvestmentBanking #Growth #GrowthStrategies #AlternativeInvestments #WealthManagement #FinTech #WallStreet https://lnkd.in/g3m8QdKQ