A Private Lender specializing in Margin Stock Loans
Banks continue to face significant regulatory pressure; risk-based capital charges for non-rated loans and tier 1 capital ratio increases (of 25% or more by 2018) will make it increasingly challenging for banks to provide middle- market loans efficiently. In addition to facing a stricter regulatory environment, banks are confronting earnings challenges and have had to sell legacy loan positions and eliminate their proprietary trading activities. The end result is a limited ability for banks to commit capital. Direct lending has since emerged as a structural replacement for banks in the viewpoint of borrowers.
Private debt has grown significantly as an asset class with an institutional endorsement from investors seeking a fixed income alternative to enhance their portfolio yields .
The private lending market is large and highly fragmented. Direct lending is here to stay and provides a steady fixed income rate of return when compared to publicly-traded corporate bonds.
Current valuation of bonds is frothy , hence , private debt is the best next alternative for steady and recurring high yield income uncorrelated to the markets.
The speed and flexibility offered by non-bank lenders provides for a viable and efficient alternative for borrowers conducting business in a competitive landscape.