Direct Lending: Evidence from European and US Markets

2021 ◽  
pp. jai.2021.1.150
Author(s):  
Laura Fritsch ◽  
Wayne Lim ◽  
Alexander Montag ◽  
Martin C. Schmalz
Keyword(s):  
Direct Lending

scholarly journals E-trade with Direct Lending and Normalized Money

2015 ◽  
Vol 7 (4) ◽  
pp. 57-64
Author(s):  
A. V. Ilyin ◽  
◽  
V. D. Ilyin ◽  
◽  
◽  
...  
Keyword(s):  
Direct Lending

Public Development Banks

2018 ◽  
Author(s):  
Marcela Estava ◽  
Xavier Freixas
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Added Value ◽  
Market Failures ◽  
Credit Guarantees ◽  
Credit History ◽  
Capital Constraints ◽  
Private Lending ◽  
Development Banks ◽  
Direct Lending

The market for credit to firms is believed to be plagued with imperfections that public development banks (PDBs) could alleviate, but it is not clear which market failures prevail, and which PDB activities are best suited to dealing with each of these failures. This chapter analyses one particular source of credit under-provision: the inability of banks to internalize the benefits of projects they might finance. A PDB may alleviate these credit inefficiencies by lending to commercial banks at subsidized rates or providing credit guarantees, targeting the firms that generate high added value as opposed to those with little credit history or low collateral. Direct lending by the PDB to the targeted industries could be superior to these subsidies to private lending, but only if the PDB’s corporate governance is strong. Whether subsidies or guarantees are preferred depends on the presence or absence of liquidity shortages or banks’ capital constraints.

The Return of the Loan: Commercial Mortgage Investing after the 2008 Financial Crisis

2017 ◽  
pp. 1-35
Author(s):  
Craig Furfine ◽  
Mike Fishbein
Keyword(s):  
Vice President ◽  
Cash Flows ◽  
List Type ◽  
Mortgage Loans ◽  
Risk Return ◽  
Mortgage Backed Securities ◽  
Direct Lending ◽  
The 2008 Financial Crisis ◽  
Benefits And Costs ◽  
Commercial Mortgages

Zoe Greenwood, vice president at Foundation Investment Advisors, was glancing through the offering memorandum for a new commercial mortgage-backed securities (CMBS) deal on April 1, 2010, a time when the opportunities for commercial mortgage investors had been bleak to the point of comical. This new CMBS deal represented the first opportunity to buy CMBS backed by loans to multiple borrowers since credit markets had shut the securitization pipeline in June 2008.The offering gave Greenwood a new investment opportunity to suggest to her firm's latest client. She had planned to recommend an expansion in her client's traditional commercial mortgage business, but these new bonds looked intriguing. Could the new CMBS offer her client a superior risk-return tradeoff compared with making individual mortgage loans?After students have analyzed the case they will be able to: –Learn how to construct promised cash flows from both commercial mortgages and commercial mortgage-backed securities –Understand the benefits and costs of direct lending versus indirect lending (purchase of mortgage-backed bonds) –Underwrite commercial mortgage loans issued by others to identify potentially hidden risks –Evaluate at what price a mortgage-bond investment makes financial sense

Sign in / Sign up

Export Citation Format

Share Document