Utility Week’s Post

Private credit does not represent a systemic risk, according to a comment piece by our CEO Scott McMunn published in this month's edition of The Banker. While the meteoric rise of private credit has been accompanied by concerns around the transparency of portfolios and how assets are valued, private credit does not involve greater leverage, looser covenants or less security than other lending. We should welcome this example of providers and users of capital finding a way to connect, he argues. Read the full opinion piece here: https://lnkd.in/e_s-72SZ

Tightening #credit spreads and lower short-term rates should provide a reprieve for ‘B’ category issuers in 2025. We analyzed 463 ‘B’ category corporate issuers in North America, applying a standardized interest rate assumption for each rating level, referencing current credit spreads and forward curve base rates. Learn more: https://ow.ly/jCiR50TUQvu #LevFin

In their latest post, our private credit team analyzes private credit activity and key trends in the second quarter. https://bit.ly/46Lv8KI #privatecredit #privatedebt #fixedincome

Banks reported tighter standards and weaker demand for home equity lines of credit (HELOCs). Moreover, for credit card, auto, and other consumer loans, standards reportedly tightened, and demand weakened on balance. #Debt #Economy #HousingMarket

An excellent listen for anyone keen to understand the state of play in the US Private Credit Market, particularly in offering context on the interplay between Banks & Private Credit Managers. We often get asked if the banks are back and whether the premium garnered in private credit will remain resilient. Bloomberg's Odd Lots provides an exceptional breakdown of the counterparties and why the Bank's continue to hone their role as "Optimizers... for cost efficiency, capital efficiency and revenues". For clients looking to understand the dynamic which has developed in the US over the last 20+ years, highly recommend a listen to understand why the private credit market has evolved, albeit still a drop in the ocean of the investment grade market today with private credit at US$2.5-3Tr vs the investment grade bond market at US$9Tr. Joe Weisenthal summates it nicely with his quip, "this is what regulatory success looks like" (he's referring to the Dodd-Frank reforms post '09). Banks are continuing to scale their primary markets and the beauty of capitalism has allowed private capital to fill a need in a robust market.

A recent poll conducted on behalf of the American Bankers Association confirmed what credit unions and community banks already knew: Americans highly value overdraft programs. Learn more about these recent survey results at https://lnkd.in/eeqaXaGC. Does your financial institution have a strong, compliant overdraft program in place? Give your accountholders what they want with a robust OMS from Pinnacle Financial Strategies: https://lnkd.in/ecvX3CAJ.

Prevent a Core Conversion project from causing stress for your bank or credit union by depending on the ICI Team to effectively lead your organization through this transformation. Learn more here: https://lnkd.in/ePBhZVGU   #coreconversion #coreconsulting #corevendorevaluation #bankconsulting #creditunionconsulting #technologyconsultant #consulting #bank #creditunion 

Does your bank or credit union have a Core Conversion coming up? Not to worry! Let the ICI Team help your financial institution navigate the volatile waves of this often intimidating task. This week, we are hosting a webcast addressing best practices to make the core conversion process less stressful and daunting. Join the conversation! Webcast: Core Conversions: Best Practices & Pitfalls When: August 7th and 8th at 2pm EDT Visit our site to register for the webcast and learn about the solutions and benefits ICI can offer during your core conversion project: https://lnkd.in/gQg_X_Ay #coreconversions #banks #creditunions #coreconsulting #projectmanagement #technologyconsulting #technologyconsultant

There’s an unseen safety net protecting lenders… and no one is talking about it. 🤔 Until now. It’s called Overcollateralization. In structured finance, borrowers pledge collateral worth more than the loan amount, giving lenders an extra cushion in case of defaults. This strategy is widely used in mortgage-backed securities (MBS), asset-backed securities (ABS), and even stablecoins. 💡 How it works: If a borrower defaults, lenders can liquidate the excess collateral to recover their losses. This makes investments far safer and boosts investor confidence. Why isn’t everyone talking about this? Because it's quietly safeguarding billions behind the scenes. Want to understand more about this critical financial strategy? ➡️ Read THIS now: https://lnkd.in/dimS4S5q #Overcollateralization #RiskMitigation #StructuredFinance #Investing #FinancialSecurity

💰This week is Global Money Week 2024! 💰 The theme this year is 'protect your money, secure your future.' This means being informed and responsible when it comes to your personal finances, and being aware of potential risks including scams and fraud. Visit globalmoneyweek.org to find out more! #ProtectYourMoney #SecureYourFuture #GMW2024