It was lodged in April We commissioned research to show that a group structure had hidden the exposure. It showed the opposite, which is the more useful answer The intended article was about invisibility. A property group running several hundred project vehicles, forty-odd lenders each facing a different one, and an aggregate that nobody could…
The File is the Product Twelve asset-based finance frauds, US$9.4bn of headline quantum, and one failure common to every one of them. We have spent some of the summer building a register of fraud events in asset-based finance. Using public data we have Fifteen cases, twelve of them between September 2023 and August 2026, with…
Context tells you who to lend to. It does not tell you who will pay. Embedded finance is right that data at the point of purchase improves selection. Selection is not where unsecured lenders lose money. In its Credit Conditions Survey for the second quarter, the Bank of England reported that lenders saw default rates…
The guarantee is not collateral NVIDIA has agreed to backstop a quarter of its own chips’ residual value. What that promise is worth depends entirely on when you need it On the 10th of August, NVIDIA announced financing platforms with Apollo, Blackstone, BlackRock, Brookfield, Goldman Sachs and KKR, intended to mobilise more than $500bn of…
They bought the bank What Sixth Street and Bayview were buying at Castle Trust, and why three managers took three different routes to the same thing inside a fortnight On the 3rd of August, Sixth Street and Bayview acquired Castle Trust Bank from JC Flowers. Sixth Street manages around $135bn. Bayview manages around $44.7bn. Neither…
The Underwriting Cost Floor Why sub-$25m secured facilities stay orphaned through the capital cycle Structuring a secured facility takes a broadly fixed amount of work. Diligence on the collateral pool and on the servicer behind it. Legal drafting for the SPV, the security package and the account control agreements. Negotiation of the covenants, the trigger…