Shadow lenders playing wait-and-see game on restructuring experts - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 68 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 51%

Colombia Noticias Noticias

Colombia Últimas Noticias,Colombia Titulares

AUDIO: The $800 billion shadow-lending industry is staffing up with recession pros who can sort out messy credit meltdowns

Private credit, also sometimes known as shadow lending or nonbank lending, has more than tripled in assets under management over the past decade, according to Preqin data, with record-low interest-rates and yield-hungry investors unleashing a glut of corporate borrowing.

Having professionals that can navigate the potential carnage when debt-saddled firms hit a rough patch is key, according to Mahoney. Hiring for restructurers hasn't been particularly active in private credit the last couple years, according to Jason Schulman, a partner at Long Ridge Partners, which handles recruitment searches for a variety of buy-side firms, including private-credit shops.

Ares Capital, one of the largest alternative lenders with $106 billion in credit assets under management, said at its investor day in May that it was growing its small team of restructuring specialists. "Senior restructuring professionals with the 'scars' earned from working through prior credit cycles are both scarce and coveted," Mahoney said. "The very best of those that do have either moved into investing roles already or they remain in highly compensated seats at leading advisory firms, neither of which are ideal recruiting grounds for restructuring/workout positions within direct lenders.

The same dynamic played out in 2008, Mahoney said, with firms caught flat-footed when economy collapsed. But back then, banks were under siege and buy-side investors had little trouble plucking their workout experts. There's the overall expansion in corporate borrowing and private-debt funds.

 

Gracias por tu comentario. Tu comentario será publicado después de ser revisado.
Hemos resumido esta noticia para que puedas leerla rápidamente. Si estás interesado en la noticia, puedes leer el texto completo aquí. Leer más:

 /  🏆 729. in CO

Colombia Últimas Noticias, Colombia Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Interview with Valerie Kay, the LendingClub exec redefining the marketplace lender - Business InsiderValerie Kay led Morgan Stanley's asset-backed securities group during the financial crisis. At LendingClub, she's launched structured products for larger investors.
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

Holiday fulfillment may drive customer loyalty - Business Insider - Business InsiderRetailers that use omnichannel fulfillment options may be best positioned to successfully handle their e-commerce orders this holiday season.
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

Cyber Monday 2019 sets new e-commerce record - Business Insider - Business InsiderCyber Monday 2019 racked up a record-setting $9.4 billion in US online sales, with smartphone shopping playing a key role in its success:
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »

Google founders seen pursuing startups, space exploration, big causes - Business InsiderWhat's next for the Google Boys? Experts see new startups, space exploration, and big causes in Larry Page and Sergey Brin's future
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »