Lending & Secured Finance 2021
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Accelerated Resolution of Financial Distress
Washington University Law Review Volume 76 Issue 4 January 1998 Accelerated Resolution of Financial Distress Barry E. Adler New York University Follow this and additional works at: https://openscholarship.wustl.edu/law_lawreview Part of the Bankruptcy Law Commons Recommended Citation Barry E. Adler, Accelerated Resolution of Financial Distress, 76 WASH. U. L. Q. 1169 (1998). Available at: https://openscholarship.wustl.edu/law_lawreview/vol76/iss4/1 This Article is brought to you for free and open access by the Law School at Washington University Open Scholarship. It has been accepted for inclusion in Washington University Law Review by an authorized administrator of Washington University Open Scholarship. For more information, please contact [email protected]. Washington University Law Quarterly VOLUME 76 NUMBER4 1998 ACCELERATED RESOLUTION OF FINANCIAL DISTRESS BARRY E. ADLER* In principle, debt can bond afirm's management to diligence and wise investment of corporate assets. In practice, however, management can escape the ties of this bond through new capital infusion prior to financial collapse. When management pursues this tactic, insolvent corporationsmay enter bankruptcy too late, after an unnecessary economic decline. To address this problem, a beneficial modification of bankruptcy's voidablepreference rules would permit a trustee to invalidate loan termsfavorable to a creditoron any loan made while a debtor is insolvent if that loan is used to repay an earlier claim. This modification would deprive an insolvent firm of resources its managers can now use to stave off bankruptcy supervision. As a result of this modification, corporate bankruptcy would occur earlierin the financial distress of a firm, before managers could unduly dissipate the firm's value. -
Financing Options in the Oil and Gas Industry, Practical Law UK Practice Note
Financing options in the oil and gas industry, Practical Law UK Practice Note... Financing options in the oil and gas industry by Suzanne Szczetnikowicz and John Dewar, Milbank, Tweed, Hadley & McCloy LLP and Practical Law Finance. Practice notes | Maintained | United Kingdom Scope of this note Industry overview Upstream What is an upstream oil and gas project? Typical equity structure Relationship with the state Key commercial contracts in an upstream project Specific risks in financing an upstream project Sources of financing in the upstream sector Midstream, downstream and integrated projects Typical equity structures What is a midstream oil and gas project? Specific risks in financing a midstream project What is a downstream oil and gas project? Specific risks in financing a downstream project Integrated projects Sources of financing in midstream, downstream and integrated projects Multi-sourced project finance Shareholder funding Equity bridge financing Additional sources of financing Other financing considerations for the oil and gas sectors Expansion financings Hedging Refinancing Current market trends A note on the structures and financing options and risks typically associated with the oil and gas industry. © 2018 Thomson Reuters. All rights reserved. 1 Financing options in the oil and gas industry, Practical Law UK Practice Note... Scope of this note This note considers the structures, financing options and risks typically associated with the oil and gas industry. It is written from the perspective of a lawyer seeking to structure a project that is capable of being financed and also addresses the aspects of funding various components of the industry from exploration and extraction to refining, processing, storage and transportation. -
Money Talks, Banks Are Talking: Dakota Access Pipeline Finance Aftermath
UCLA The Indigenous Peoples’ Journal of Law, Culture & Resistance Title Money Talks, Banks are Talking: Dakota Access Pipeline Finance Aftermath Permalink https://escholarship.org/uc/item/1043285c Journal The Indigenous Peoples’ Journal of Law, Culture & Resistance, 6(1) ISSN 2575-4270 Authors Cook, Michelle MacMillan, Hugh Publication Date 2020 DOI 10.5070/P661051237 eScholarship.org Powered by the California Digital Library University of California MONEY TALKS, BANKS ARE TALKING: Dakota Access Pipeline Finance Aftermath Michelle Cook* and Hugh MacMillan+ Abstract This Article provides a Dakota Access Pipeline (DAPL) finance and divestment campaign retrospective. The Article explains: 1) how DAPL was financed, highlighting the dynamic in which banks take fees for the privilege of financing and refinancing pipeline debt; and 2) how joint venture ownership structures and corporate finance arrangements buffered against efforts to hold DAPL banks accountable. At the same time, many of the same banks finance gun industry and prison industry growth, alongside increased police militarization. Although, intersec- tional visibility of these financial ties is a start, victims of the financial industry lack enforceable corporate accountability mechanisms for seek- ing redress. DAPL banks managed to deflect divestment pressure and avoid meaningful remedial actions. These observations point to the need for systemic changes in corporate accountability mechanisms but also to reclaim and reimagine a world outside of capital, of future self-de- termined -
Loan Against Shares Agreement
Loan Against Shares Agreement GerardChocolaty Germanize and jinxed that Pete groins. screens Jermaine inexactly refect and incuriously. spites his destroyers pridefully and disconcertingly. Arvin still copyreads photographically while pitiable Do please sign this form be if candid is absent Please ensure agile relevant. The collateral may be seized by move bank based on all two parties' agreement. You can use that margin here for just about fat you wish Margin Agreement consider you own borrow money by margin scheme must set up a tuition account with. Each case of a balasubramanian, its possession or against securities? This is where other company would repurchase shares valued at the unit fair. Needs to act cripple the co-applicant and tune the overdraft agreement. The debt review then be valid along a liquidator or administrator should the first become insolvent. Loan agreements contain an amount together, shares loaned shares and this loan against securities into any other tax benefits accrued interest rates. You loans against pledged, loan agreements also has any obligation on which case. That borrowed money is called a margin held and other can be used to. Subscribers can be loaned against shares may be indebted to. Pledge of shares and cession of claims on fresh account agreement. Lien or shared equity shares issued by such agreements work? Securities lending and stock lending lets stock loan holders free for cash. Demand loan against shares loaned against losses. A typical loan agreement sets out the appliance on reason a lender will provide. ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO income AGAINST each FACILITY INDEX Page 3 of 34 DBS Mortgage charge Agreement. -
Secured Credit Spreads and the Issuance of Secured Debt
December 2020 Secured Credit Spreads and the Issuance of Secured Debt EFRAIM BENMELECH, NITISH KUMAR, and RAGHURAM RAJAN* ABSTRACT We show that after accounting for selection, credit spreads for secured debt issuances are lower than for unsecured debt issuances, especially when a firm’s credit quality deteriorates, the economy slows, or average credit spreads widen. Yet firms tend to be reluctant to issue secured debt when other forms of financing are available, as we demonstrate with an analysis of security issuance over time and in particular around the COVID-19 pandemic shock in the United States in early 2020. We find that for firms that are rated non-investment grade and that have few alternative sources of financing in difficult times, the likelihood of secured debt issuance is positively correlated with the spread between traded unsecured and secured bonds. It is not correlated for firms that are investment grade. This pattern of issue behavior is consistent with theories that see collateral as a form of insurance, to be used only in extremis. * Efraim Benmelech is with the Kellogg School of Management and NBER ([email protected]). Nitish Kumar is with the University of Florida ([email protected]). Raghuram Rajan is with the University of Chicago Booth School and NBER ([email protected]). The authors thank Dave Brown, Mark Flannery, Chris James, Gregor Matvos and Michael Schwert and seminar participants at the Kellogg School of Management and SMU Cox for very helpful comments and discussions. Sanhitha Jugulum and Manvendra Tiwari provided outstanding research assistance. Rajan thanks the Fama Miller Center, IGM, and the Stigler Center at the University of Chicago Booth School for research support. -
2544 Public Disclosure Authorized
_WFS25s4q- POLICY RESEARCH WORKING PAPER 2544 Public Disclosure Authorized The Uniqueness of Short- A secured letter-of-credit loan allows a lender to make larger Term Collateralization loans than would be permissible on an unsecured Leora K/a pper basis, maximizing a risky Public Disclosure Authorized borrower's investment capital. Empirical evidence shows that secured letters of credit are used by borrowers who are informationally opaque and have higher observable risk. Such borrowers also have fewer growth opportunities Public Disclosure Authorized and are less likely to pay dividends. Public Disclosure Authorized The World Bank Development Research Group Finance U February 2001 POLIcY RESEARCH WORKING PAPER 2544 Summary findings Klapper finds evidence that lines of credit secured by contracting costs is associated with the borrower's accounts receivable are associated with business business risk and the quality of the borrower's customers. borrowers with a high risk of default. While an Empirical tests on a sample of publicly traded U.S. unsecured short-term loan is repaid from the borrower's manufacturing firms find that firms with secured line of future cash flow, a loan secured by accounts receivable (a credit loans are observably riskier and have fewer unique form of "inside" collateral) is repaid from expected growth opportunities. previously generated and observed sales (the borrower's Klapper's findings suggest that observably riskier trade credit terms to its customers). Consequently, borrowers can borrow more on a secured than on an lenders that secure accounts receivable are most unsecured basis. The results highlight the important role concerned with the credit risk of the borrower's of secured letters of credit in providing liquidity to risky, customers and the borrower's ability to continue to credit-constrained firms that might not have access to generate new sales. -
What Secured Lenders and Factors Need to Know About PACA and Other Hidden Liens
BROUGHT TO YOU BY An SFNet Industry Webinar Lien On Me: What Secured Lenders and Factors Need to Know About PACA and Other Hidden Liens JULY 22, 2020 12:00 PM - 1 : 0 0 P M E T Disclaimer Today’s webinar is for information purposes. It is open to SFNet members and outside participants, which may consist of media representatives, related authorities and other interested parties. Comments made by individuals participating in this meeting are not intended to represent the views of their respective companies. It is expected that information shared in this forum will be within the boundaries of best practices and based on publicly available information and in no way should be considered giving legal or business advice. This program is being recorded for the benefit of our members and will be available at SFNet.com along with copies of all materials presented. Chat comments will not be recorded or attributed to individuals. No participant may be quoted without express written consent by the individual. We invite participants to continue the conversation after the meeting by joining the SFNet Discussion Group at SFNet.com. © 2020 Secured Finance Network Brought to you by: 2 Presenters Howard Brod Brownstein (Moderator), The Brownstein Corporation (610) 828-1300 or [email protected] Howard is the President of The Brownstein Corporation near Philadelphia, a firm that provides investment banking, turnaround management and other services. He also regularly serves as an independent corporate board member for publicly-held and privately-owned companies, as well as large nonprofits. Howard is an NACD Board Leadership Fellow as well as a Fellow of the American Bar Foundation. -
Residential Real Estate Lending, Comptroller's Handbook
Comptroller’s Handbook A-RRE Safety and Soundness Capital Asset Sensitivity to Other Adequacy Quality Management Earnings Liquidity Market Risk Activities (C) (A) (M) (E) (L) (S) (O) Residential Real Estate Version 1.0, June 2015 Version 1.1, June 16, 2016 Version 1.2, January 6, 2017 Office of the Comptroller of the Currency Washington, DC 20219 Version 1.2 Contents Introduction ..............................................................................................................................1 Overview ....................................................................................................................... 1 Mortgage Products .................................................................................................. 3 Home Equity Loan and Line of Credit Products .................................................... 5 Subprime Mortgage ................................................................................................ 7 Reverse Mortgage Loans ...................................................................................... 10 Investor-Owned RRE ............................................................................................ 12 Manufactured Housing.......................................................................................... 12 Affordable Housing .............................................................................................. 13 RRE Activities and Functions ..................................................................................... 15 RRE Loan -
Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities
DOE/EE-1634 Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities Financing Solutions Working Group August 2017 The State and Local Energy Efficiency Action Network is a state and local effort facilitated by the federal government that helps states, utilities, and other local stakeholders take energy efficiency to scale and achieve all cost-effective energy efficiency by 2020. Learn more at www.seeaction.energy.gov Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities was developed as a product of the State and Local Energy Efficiency Action Network (SEE Action), facilitated by the U.S. Department of Energy/U.S. Environmental Protection Agency. Content does not imply an endorsement by the individuals or organizations that are part of SEE Action working groups, or reflect the views, policies, or otherwise of the federal government. This document was final as of August 9, 2017. This work was supported by the State and Local Energy Efficiency Action Network (SEE Action) under Lawrence Berkeley National Laboratory Contract No. DE-AC02-05CH11231. If this document is referenced, it should be cited as: State and Local Energy Efficiency Action Network. (2017). Energy Efficiency Financing for Low- and Moderate- Income Households: Current State of the Market, Issues, and Opportunities. Prepared by: Greg Leventis, Chris Kramer, and Lisa Schwartz of Lawrence Berkeley National Laboratory. FOR MORE INFORMATION Regarding Energy Efficiency Financing for Low- and Moderate-Income Households: Current State of the Market, Issues, and Opportunities, please contact: Johanna Zetterberg Victoria Ludwig U.S. -
Direct Lending: an Investment Opportunity Within Private Debt March 2018
Direct Lending: An Investment Opportunity Within Private Debt March 2018 The information contained herein is for informational purposes only. Nothing contained herein should be construed as legal or investment advice; please consult your investment professional for any such advice. This information has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. Any opinions expressed are subject to change without notice. Executive Summary . This paper discusses direct lending, a growing segment of the private debt market, which Aon Hewitt Investment Consulting, Inc. (AHIC) believes could be a potential fit for certain portfolios. Private debt includes a wide range of illiquid credit strategies, including distressed debt, direct lending, mezzanine debt, special situations, and venture debt. U.S. banks have significantly scaled back their middle-market lending activities post-2008 and the subsequent introduction of more stringent banking regulations. Since the beginning of 2009, we have seen European banks restrict their middle-market lending activities as well. The lack of “traditional” bank lending in this space has created the opportunity for attractive risk-adjusted investment opportunities. Direct lending strategies are typically accessed by investors through closed-ended vehicles with an expected life of seven to 10 years. Because of the illiquid nature of small- and middle-market loans—which are the segments of the market primarily targeted by direct lending strategies—our capital market assumptions for a typical leveraged direct lending fund has similar expected returns as public equity. Market Overview What Is Private Debt? Private debt can be broadly defined as any non-publicly traded debt financing of a company and typically references companies in the small- and middle-market segment. -
Collateral and Secured Debt∗
Collateral and Secured Debt∗ Adriano A. Rampiniy S. Viswanathanz October 2020 Abstract We distinguish between collateral and secured debt. Secured debt is explicitly collateralized, placing a lien on specific assets, which facilitates enforcement. Un- secured debt is a claim on unencumbered assets and thus implicitly collateralized. Tangible assets serve as collateral restricting both types of debt. The explicit col- lateralization of secured debt entails costs but enables higher leverage. Therefore, financially constrained firms use more secured debt both across and within firms. Our dynamic model is consistent with stylized facts on the relation between secured debt and measures of financial constraints and between leverage and tangible assets, and with evidence from a causal forest. JEL Classification: Keywords: Collateral; Secured debt; Tangible assets; Intangible capital; Leasing ∗We thank Jonathan Payne, Moritz Lenel, and seminar participants at Princeton University, Duke University, and Peking University for helpful comments and John Barry for exceptional research assis- tance. This paper was written while the first author was on sabbatical leave at Princeton University and NYU; their hospitality is gratefully acknowledged. Rampini is an NBER Research Associate and a CEPR Research Fellow. Viswanathan is an NBER Research Associate. yDuke University; [email protected] zDuke University; [email protected] 1 Introduction Collateral plays a central role in both macro finance and corporate finance. Kiyotaki and Moore (1997) and a large subsequent literature argue that collateral constraints are an important reason why finance affects macroeconomic dynamics. The effects of collateral constraints on household finance, intermediary finance, and corporate finance in the recent global financial crisis were arguably substantial. -
Federal Reserve and Junk Bond Financing: Anomaly Or Inconvenience?
McGeorge Law Review Volume 19 Issue 3 Article 4 1-1-1988 Federal Reserve and Junk Bond Financing: Anomaly Or Inconvenience? William W. Barker Attia Bartel Eng & Torngren Follow this and additional works at: https://scholarlycommons.pacific.edu/mlr Part of the Law Commons Recommended Citation William W. Barker, Federal Reserve and Junk Bond Financing: Anomaly Or Inconvenience?, 19 PAC. L. J. 769 (1988). Available at: https://scholarlycommons.pacific.edu/mlr/vol19/iss3/4 This Article is brought to you for free and open access by the Journals and Law Reviews at Scholarly Commons. It has been accepted for inclusion in McGeorge Law Review by an authorized editor of Scholarly Commons. For more information, please contact [email protected]. THE FEDERAL RESERVE AND JUNK BOND FINANCING: ANOMALY OR INCONVENIENCE? William W. Barker* TABLE OF CONTENTS I. JUNK BONDS AND THEIR ROLE AS PART OF A LARGER SCHEME IN INNOVATIVE CORPO- RATE ACQUISITION FINANCING ...................... 770 A. Introduction-Increase in Corporate Takeovers.. 770 B. Junk Bond Financing Prior to Federal Reserve Regulation .................................. 771 II. THE FEDERAL RESERVES ANTI-TAKEOVER REGULATION: 12 CFR SECTION 207.112 ....... 773 A. The Federal Margin Restrictions ...................... 774 B. Regulation G ............................................... 775 III. CRITICISM OF THE FEDERAL RESERVE BOARD REGULATION ................................................... 776 A. Background and Legislative History ................. 776 1. Pre-margin Regulation Abuses .................. 776 2. Legislative History ................................. 776 3. Ultra Vires ............................................ 778 B. "Indirectly Secured" by Margin Stock ............. 780 * Associate, Attia Bartel Eng & Torngren, Sacramento, California. A.B., 1983, Univer- sity of California, Berkeley; J.D., 1986, University of the Pacific, McGeorge School of Law; LL:M., 1987, Business & Taxation, University of the Pacific, McGeorge School of Law.