The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Portfolio management shores up loan books

Corporates need bank liquidity more than ever as the capital markets can close suddenly. Bank providers sense an opportunity and loan volumes, though down, have remained healthy. But banks also need to shore up their defences or risk drowning in bad debt.

Loans have been suffering, alongside other credit markets, with volumes of new deals down by as much as a third on last year. Loans are no longer profitable enough for banks to want to make them for their own sake. At the same time, clients need bank support more than ever before as the capital markets close to many and relying on commercial paper roll-overs becomes dangerous. That offers a great opportunity to leading syndicated loan banks that have put their faith in using their balance sheets to secure M&A and capital markets business - as long as their portfolio managers can then mitigate the credit exposure concentrations.

These banks hope that careful due diligence and disciplined portfolio management will keep any losses within manageable limits while letting them steal market share in other areas from pure investment bank rivals.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree