General Electric’s exit from most of its lending businesses could be bad news for both its borrowers and the investors who buy these loans and leases via the securitization market, according to Moody’s Investors Service

Over the next two years, GE’s asset sales will shrink GE Capital to roughly 10% of the parent company’s operating earnings. Moody’s expects that the GE Capital unwind will likely result in the sale or early liquidation of the securitization trusts and servicing platforms for outstanding deals backed by asset-based loans, inventory financing and equipment loans and leases.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.