Commercial lending

Lenders have until the end of 2021 to phase out their use of the London interbank offered rate in setting interest rates, but ServisFirst Bancshares and its CEO Tom Broughton see little reason to wait when a replacement is already available.

The board- and management-level handing of CRE concentration was the chief concern of FDIC examiners, making up more than 56% of all the supervisory recommendations regulators made in the two-year period.

The inaugural securitization for the Los Angeles-based lender will include $34.86 million in Class A notes, with an initial BBB rating from S&P Global Ratings.

Financial regulators’ statement cautiously encouraging lenders to go beyond traditional underwriting in their lending decisions is a big step forward for the use of alternative data and artificial intelligence, bankers say.

In the past year, companies including LendingClub Corp. have been tightening the spigot, following a revolt by investors upset over years of unexpected losses.

ReadyCap Lending Small Business Loan Trust 2019-2 is a transaction of $131.03 million in Class A notes, secured by the unguaranteed interests of a pool of 1,101 small-business loans totaling $155.25 million.

Fitch’s list of loans with growing risks of downgrades reached $110 billion in December, up 53% year-to-date.

JPMorgan Chase & Co.’s asset management arm is extending a push into the $787 billion private credit market as cash pours into the asset class from yield-hungry investors.

Casting aside recession fears, the credit bureau predicts credit cards, mortgages, auto loans and unsecured personal loans should all perform well — including those extended by online lenders.

Many business customers are putting off expansion because they can’t find enough workers to fill available jobs.

TPG Sixth Street Partners' Alan Waxman warns investors are turning a blind eye to an epidemic of fake corporate earnings projections.

Alternative data "may improve the speed and accuracy of credit decisions and may help firms evaluate the creditworthiness of consumers," the agencies said.

Shizuoka Bank Ltd. plans to step up its search for yield by buying more U.S. collateralized loan obligations, according to its top executive.

Investors have been demanding significantly higher yields to lend to junk-rated companies in recent weeks - so much so that spreads in an index of the riskiest tier of junk, known as CCC, just breached 1,000 basis points for the first time in more than three years.

Laredo Petroleum Inc. and Oasis Petroleum Inc. are among at least six producers whose ability to secure short-term loans against their oil and natural gas reserves have dropped by 10% or more.

Tesla’s sponsorship of the $940.95 million Tesla Auto Lease Trust 2019-A comes as the battery-electric vehicle (BEV) manufacturer has regained its footing with a surprise third-quarter profit and overcome recent manufacturing woes on its mass-market Model 3 vehicle.

The 2015 decision posed new legal challenges for institutions trying to sell loans to third parties, but the federal regulatory agency proposed steps Monday for banks and debt parties to evade state interest rate caps.

Banks and lenders have made inroads in analytics and automation with machine-learning technology. Will asset management follow suit?

According to a presale report from Kroll, the additional notes will carry the same ratings and terms on the five counterpart classes of $700 million in outstanding notes.

So far farm loans are holding up well, but bankers gathered at an industry conference this week said they are growing increasingly concerned that credit quality will weaken if the U.S. and China don’t reach a deal soon.