Sumitomo Mitsui Banking Corporation – SMBC Group’s Post

#Germany has a healthy #SME financing system, yet these entities have been advised to opt for #embedded #finance for better #efficiency. Mohan N dives deep into the subject in this article in Banking Frontiers: CLICK HERE >> https://lnkd.in/e6PiDyaa If you like this kind of #content, please follow me on Linkedin and visit www.bankingfrontiers.com for much such content.

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

“A group of companies that might be asset rich but cashflow restrained, or require pre-IPO or single stock-based financing - things that banks traditionally find it harder to lend to, that is where private credit comes in.” — Clifford Lee, DBS Bank Global Head of Investment Banking on FinanceAsia https://lnkd.in/gHgep6gQ Securitize provides a platform for qualified investors looking to enter the private credit space through Hamilton Lane’s Senior Credit Opportunities Fund (SCOPE) — an evergreen fund with added liquidity potential through on-demand redemptions. Learn more: https://lnkd.in/e76X6Qf3

The private credit realm, with titans like Blackstone and Ares Management, is transforming the investment-grade bond market. BDCs have raised $13.4 billion this year alone, almost doubling 2023's total. This surge not only marks a historic high but underscores a strategic pivot towards cheaper unsecured financing. Investors are evidently unfazed by risks, eagerly snapping up high-rated notes. The allure of cheaper financing is palpable, with BDCs now securing lower rates in the unsecured market compared to the secured one. This development is a testament to the relentless demand for yield in a low-rate environment. Lower borrowing costs are a masterstroke, enabling private credit firms to undercut competition with attractive investment rates. This tactical edge is critical as private loans now offer historically low spreads, enhancing the appeal of these investments. From Ares' $700 million five-year notes to Blue Owl’s $500 million issuance, the recent activity is nothing short of spectacular. HPS Corporate Lending Fund's $400 million bond issuance further exemplifies the trend, capitalizing on the favorable borrowing landscape. A confluence of market stability, ample liquidity, and abundant dry powder has catapulted private credit markets into a double-digit growth trajectory. BDCs are seizing these conditions to bolster liquidity, refine credit curves, and expand their market footprint. Even as Fed rate hikes push borrowing costs up, BDCs are unlikely to slow down. With issuance rates 68% above 2021 levels, they are poised to shatter records. The sector’s resilience and strategic positioning are undeniable. The increasing comfort among investors, coupled with enhanced secondary market liquidity, signals a maturing market. Banks are not just participants but eager enablers, providing leverage that underpins BDCs' competitive edge. BDCs' unique structure, allowing them to distribute earnings as dividends and sidestep corporate tax, necessitates a balance of equity and debt. This structural flexibility, combined with favorable pricing, positions them as formidable players in the credit market. In essence, the surge of BDCs into the bond market is not just a trend but a transformative shift, redefining the dynamics of private credit. With strategic acumen and market conditions aligned, BDCs are not just participating—they are leading the charge. Source: Bloomberg - https://lnkd.in/e82djn_5

We are pleased to sponsor AsianInvestor's Insurance Investment Briefing in Hong Kong on March 19 where Frédéric Nada, Partner at Arcmont Asset Management, will participate in a panel discussion “Spotlight on Private Markets”. Fred will explain why European private debt is an appealing asset class to investors and discuss recent market trends and where key opportunities could be found. Click here for more insights: https://lnkd.in/dGrkrbya #insurance #IIBHK #NuveenPrivateCapital #PrivateCredit #PrivateDebt

Barclays Investment Bank Gains Market Share in Advisory Barclays #bankingindustry #finances #fintech #fundraising #money #investing

Impressive results at UBS Investment Bank. Global banking capital markets doing great, driven by cash equities in the US. Derivatives also doing great. Now, imagine what Q3 will look like with the increased volatility, bumper days for turnover beginning of August. New abbreviations I learned from this report: ➡️LCM (Leveraged Capital Markets): This segment focuses on financing for companies with higher levels of debt. It typically involves leveraging for mergers and acquisitions (M&A), leveraged buyouts (LBOs), and other transactions where debt plays a significant role. LCM professionals work to structure and arrange financing products such as leveraged loans and high-yield bonds. ➡️DCM (Debt Capital Markets): This area deals with raising capital through debt instruments, including corporate bonds and other fixed-income securities. DCM professionals assist clients in issuing new debt securities and advise on timing, pricing, and other factors associated with debt issuance. They work closely with issuers and investors to facilitate the raising of funds through debt markets. ➡️ECM (Equity Capital Markets): This segment involves raising capital through the issuance of equity instruments. ECM professionals assist companies in going public through initial public offerings (IPOs) and in raising funds through secondary offerings. They provide strategic advice, valuations, and facilitate the underwriting of shares.

Unlock New Capital Avenues with Structured Financing Programs!** In today's dynamic financial environment, businesses need innovative solutions to secure funding and manage risk. Structured financing programs offer precisely that, providing tailored solutions to address specific financial needs and challenges. Here's a quick dive into some of the most impactful structured financing programs: **1. Asset-Backed Securities (ABS):** Enhance liquidity and diversify risk by converting assets into marketable securities. **2. Collateralized Debt Obligations (CDOs):** Tailored risk/return profiles through tranches of debt instruments. **3. Commercial Mortgage-Backed Securities (CMBS):** Gain exposure to commercial real estate without direct ownership. **4. Syndicated Loans:** Access more significant amounts of capital with reduced risk through multiple lenders. **5. Standby Letters of Credit (SBLC):** Guarantee payment and reduce counterparty risk in international trade. **6. Mezzanine Financing:** Bridge the gap between debt and equity with flexible capital and higher returns. **7. Structured Trade Finance:** Mitigate risks and enhance liquidity in international trade transactions. Understanding and leveraging these programs can open new doors for growth and stability. Want to explore how structured financing can benefit your business? Please book a consultation call with us via AltFunds Global at www.altfundsglobal.com. #Finance #StructuredFinance #CapitalMarkets #BusinessGrowth #AltFundsGlobal #SBLC #TradeFinance #InvestmentStrategy #BusinessFunding

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