Profile cover photo
Profile photo
ABL Advisor
31 followers -
Serving Asset-Based Lending Decision Makers...
Serving Asset-Based Lending Decision Makers...

31 followers
About
Posts

Post has attachment
Sports Betting: A Panacea or a Mirage
Anticipation! On May 14, 2018, the United States Supreme Court struck down the federal law that prohibited sports gambling, giving states the go ahead to legalize sports betting. If you read and give credibility to all the press coverage, it is going to be the panacea to solve all states' fiscal problems and fill their coffers; something equivalent to Moses parting the Red Sea. Read more....

Post has attachment
Converting ABL Pipeline While Maintaining Your Sanity in 3 Easy Steps

In 1896, the economist Vilfredo Pareto found that 80 percent of the land in Italy was owned by 20 percent of the population. Over time, others noted that the 80/20 rule applied more broadly to various outcomes in business and life, and his eponymous principle was born. The Pareto Principle states that 80 percent of the effects come from 20 percent of the causes, and asset-based loan origination is no exception.

All ABL executives experience the 80 percent – planning a strategic partnership that yields absolutely no results, working for weeks on a deal only to learn that you weren’t even in the top three, and (most soul-crushingly) having a borrower walk from a closing at the eleventh hour after absorbing a few hundred man hours. In the words of Hyman Roth, “this is the business we’ve chosen.”

Post has attachment
Straight from the Stalking Horse’s Mouth

It goes without saying that a lender must work to maximize its recovery when a borrower is in default and has no reasonably realistic or meaningful way to cure the default.

This scenario far too often forces a lender to determine the most efficient and effective method to sell its collateral. As part of that decision-making process, a lender must consider how any course of action will serve to protect the lender from allegations and perceptions (i) of self-dealing or favoritism in the selection of the buyer, (ii) of under-valuing the collateral, (iii) that the collateral was not effectively marketed, (iv) the lender sold the collateral for too little, or (v) the lender sold the collateral through a secretive process.

Post has attachment
Data-Driven Insights: Restructuring Entrance & Exit Trends

The U.S. corporate bankruptcy space has seen a mini boom over the last two years, predominantly fuelled by two sectors—retail and oil & gas (O&G). Historically low crude oil and natural gas prices precipitated an O&G swell of in-court reorganization strategies, while Amazon and the ever-changing dynamics of e-commerce contributed to retail companies, large and small, also filing for bankruptcy in large numbers.

Along with these sector-driven waves, Debtwire has noted the clear rise of pre-packaged and pre-arranged plans, with an ever-increasing number of large corporate debtors often getting at least a roadmap hammered out with their major creditors before filing bankruptcy petitions. However, despite this trend towards pre-baked deals and away from the more expensive and unpredictable “free-fall,” the bankruptcy landscape continues to be littered with numerous high-profile liquidations and abandoned transactions.

Post has attachment
Lurking in the Lease: Unexamined Risks Could Worsen the "Retail Apocalypse"

Concern about the fate of American retail is growing—and with good reason. Laden with debt, challenged by Amazon and racing to adapt to the changing consumer, a number of U.S. chains face uncertain futures. During the first quarter alone, Moody’s tracked a record nine loan defaults among retailers. Meanwhile, Cushman & Wakefield sees potential for another 11,000 store closings (as well as bankruptcy filings by an additional 25 at-risk chains) by the end of this year.

Post has attachment

Post has attachment
CECL: Embracing Needed Change -- After years of deliberation dating back to the 2008 financial crisis, the Financial Accounting Standards Board (FASB) issued the highly anticipated Current Expected Credit Loss accounting standard (CECL) on June 16, 2016. After the financial crisis, the incurred loss model was criticized for recognizing insufficient losses too late because institutions were prohibited from reserving against future expected losses. In hindsight; this was most evident when loan-loss reserves were at their lowest in decades during the years immediately preceding the financial crisis. CECL aims to avoid this scenario by requiring institutions to measure all expected credit losses for all financial instruments measured at amortized cost.

Post has attachment
The Road Ahead for Specialty Finance and Non-Bank Lenders - If uncertainty is the siren song for this industry, that condition abounds today - Observations from the iGlobal Specialty Finance Conference from EssexStreet Advisors' David Wisen.

Post has attachment
Borrowing Base Certificate Forecasting: Avoiding the Unexpected - Is a Borrowing Base Certificate (BBC) forecast necessary? Focus Management's Juanita Schwartzkopf explains...

Post has attachment
BankruptcyData, a service provided by New Generation Research, Inc. (NGR) released its annual bankruptcy report. The yearly report analyzes trends associated with U.S. Bankruptcy Court activity. In 2016, declining bankruptcy trends reversed dramatically, with overall bankruptcies in both the public and private sector rising by 26%. Nearly a hundred public companies filed for Chapter 7 and Chapter 11 protection, with just under $105 billion in combined pre-petition assets. Additionally, an impressive 25 petitioners had assets greater than $1 billion, compared to 19 in the previous year. #Bankruptcy #Chapter11 #Chapter7 #CommercialFinance

Wait while more posts are being loaded