 |
 |
| |
|
|
| |
Although banks expect the Federal Reserve (Fed) to hike rates and continue its tight monetary policy in 2023, it’s still too early to comment on the broader impact of this on the financial health of banks, which may see a surge in delinquencies and credit deterioration. 79% of the large US banks' senior loan officers surveyed by the Fed stated that their banks tightened credit underwriting standards for commercial and industrial loans in the second half of 2022 due to an unfavourable economic outlook, reduced risk tolerance and industry-specific concerns.
As part of industry interaction, we recently conducted a very interesting discussion with top leveraged finance experts on how the credit market will likely evolve and what lies ahead for the leveraged finance market in 2023. I encourage you to listen to the recording in case you missed the live broadcast.
In this edition, we also include recent trends in certain key market segments. I trust you will find them useful.
Rajul Sood, Global Head of Lending Solutions
|
|
| |
|
|
| |
Webinar on-demand: Navigating the leveraged finance tightrope – power-steering credit governance to be future-ready
|
| |
|
| |
Our webinar on leveraged finance brought together experts who discussed their key priorities for 2023 and how they plan to minimise the impact of the impending rise in default rates and lower loan volumes.
|
|
| |
|
|
| |
|
|
| |
|
Commercial and corporate lending trends in 2023
|
|
Leveraged finance trends in 2023 |
 |
|
 |
|
|
|
Financial institutions are likely to face a difficult environment in 2023, driven by stagnating economic growth rates, high inflation, rising interest rates and heightened geopolitical tensions. We shortlist six salient banking trends that may emerge in 2023.
|
|
Banks with exposure to leveraged companies will have to monitor new and existing credits more diligently due to the potential deterioration in asset quality and the volatility in asset prices caused by market fears about rising defaults.
|
|
|
|
| |
|
|
|
|
| |
|
Trade finance trends in 2023 |
|
Why effective covenant monitoring is essential for credit risk governance
|
 |
|
 |
|
|
|
While recent statistics hint at a y/y contraction in 2023 and an uncertain short-term outlook for international trade, growth in trade will likely accelerate in the coming years on advancements in trade logistics, development of new trade agreements, digital adoption and supply-chain diversification.
|
|
According to the European Banking Authority’s guidelines on loan origination and monitoring, lenders must continue to monitor frameworks, supported by adequate data infrastructure.
|
|
|
|
|
| |
|
|
|
|
| |
|
|
| |
Covenant monitoring using Acuity’s proprietary tools
|
|
| |
|
| |
Learn more about our suite of Business Excellence and Automation Tools (BEAT) and proprietary platform CovenantPulse that help lenders automate their covenant-monitoring tasks.
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
| |
ACUITY IN THE NEWS |
|
| |
| |
|
|
| Rajul Sood a winner in the “Business Leader” category at Campaign India's Women Leading Change Awards 2023
|
|
Damian Burleigh on how building client relationships still requires the human touch
|
 |
|
 |
|
|
|
The awards acknowledge women who have exhibited exceptional leadership skills and honed business acumen, resulting in business growth and strategic direction.
|
|
The financial services sector had to accelerate digital transformation and adopt virtual communication amid the pandemic. This has stifled their focus on building deep and meaningful ties with clients, key to new and incremental revenue generation.
|
|
|
|
|
| |
|
|
|
|
| |
|
| |
| | |
| | |
ABOUT ACUITY KNOWLEDGE PARTNERS
Acuity Knowledge Partners is a leading research, analytics, and business intelligence consultant to the financial services sector. The company’s network of analysts and industry experts, combined with advanced data and technology, supports over 520 financial institutions and consulting companies worldwide to operate more efficiently, and unlock their human capital, driving revenue higher and transforming operations. It specialises in investment banking, investment research, private equity and consulting, and commercial lending. Acuity is headquartered in London and operates from nine locations worldwide. In 2019, the company was established as a separate business from Moody’s Corporation through its acquisition by Equistone Partners.
For more information, please visit https://www.acuitykp.com/about-us/
|
|
| | | | | | US: +1 929 618 0217 | UK: +44 20 7550 4499 | India: +91 80 6113 3000
Sri Lanka: +94 11 235 6000 | Beijing: +86 10 8248 6812 | HK: +852 (972) 836-39 | contact@acuitykp.com | |
| | | |
| | | | | | ©2023 Acuity Knowledge Partners. All rights reserved. | |
| | | |
|