Finance

The North Carolina-based regional bank still expects its revenue to outpace its spending this year, though if interest rates hold steady, it could "create some risk," a top executive said Friday.

The framework would entail lenders of a nearly $5 billion secured loan due 2027 being partially paid and unsecured creditors receiving a coupon bump in return for agreeing to extend due dates.

There is a liquidity reserve account that will be fully funded to its required amount when the deal closes.

More than 10,000 prime retail loan contracts on mostly used cars will secure the notes.

Lorie Logan, president of the Federal Reserve Bank of Dallas, said in a speech Wednesday that she is content to leave interest rates where they are, adding that she would want to see inflation fall to 2% before considering cuts.

The assets are loans to alternative investment funds, and Capital Street includes an 18-month revolving period when new assets can be added to the transaction.

CEO Robin Vince refused to comment on "rumors or speculation" about a potential merger between the custody banking giant and its smaller rival, Northern Trust. He also said that the bar for BNY to engage in M&A is "very high."

Strategic financing solutions will be a collaboration between banking, markets and sales, and will initially focus on services including structured private solutions, and strategic asset-backed securities finance.

The Mission Lane Credit Card Master Trust will raise $550 million in capital from securitized bonds, secured by a pool of Visa-branded credit card accounts that Transportation Alliance Bank and WebBank originated.

Most indicators cited by Morningstar DBRS are favorable to a good securitization market the rest of the year, but inflation is one of several challenges.