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
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%.