Syndicated Scoop: A Surprising Use for Blockchain, Banks Tightening Loan Rules and More

This month's syndicated lending scoop: blockchain technologies, banks tightening loan rules, leveraged loan issuance down 21% from the same period last year.


12 September 2016

Private Equity CFOs Focus on Technology

Intralinks® for Financial Services—Syndicated Scoop is a newsletter providing a recap of the month’s top stories and insightful commentary related to the commercial and syndicated lending industry. Read on for a quick summary of this month’s Syndicated Scoop:

 

 

 

  • Blockchain technologies reducing time needed for Shared National Credit Exams
  • Fed finds more banks tightening loan rules
  • Leveraged loan issuance down 21% from the same period last year

This Month’s Syndicated Scoop...

A Surprising Use for Blockchain: Shared National Credit Exams

What if blockchain technologies could be used by regulators in offsite collection and analysis of bank loan data to reduce the time needed for onsite examinations? Although banks and bank regulators are quickly becoming familiar with these technologies, there has been little focus on using them for actual regulatory oversight. American Banker reports on how distributed ledger technology has the potential to provide examiners access to near-real-time data on the largest outstanding extensions of credit.

Fed Finds Banks Are Tightening on Commercial & Industrial (C&I) Loans

The July results of the Federal Reserve’s survey of senior loan officers at banks contained a mild surprise: some banks tightened their standards on commercial and industrial loans in the second quarter of 2016. The domestic banks said they tightened either the standards or terms on C&I loans because of a less favorable or more uncertain economic outlook, worsening of borrowers’ industry-specific problems and reduced tolerance for risk.

Leveraged Loan Monthly (Thomson Reuters)

What to watch:

 

 

 

  • YTD global leveraged loan issuance is at $381 billion, down 21% from the same period a year ago.
  • Just over 60% of institutional issuance ($104 billion) this year is for new money purposes, while refinancing activity is down 33% to $64 billion.
  • Breaking out the YTD institutional loan new money issuance of $104 billion, we see that M&A (excluding LBOs) accounts for 45%, with LBOs at 29% and other purposes representing 26%.


Hope you liked this month’s edition. If you have a comment or tip, feel free to shoot us an e-mail at debtspace@intralinks.com.



Kylie Horner

Kylie Horner

Kylie Horner is an Associate in Strategy and Product Marketing at Intralinks. She is part of the team responsible for determining go-to-market strategies for the debt capital markets and alternative investment businesses. Prior to joining Intralinks, Kylie worked in marketing and communications at ACTIV Financial, a financial information technology firm. She graduated from the University of Colorado at Boulder with a degree in Journalism, and a specialization in global media.

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