Direct lending

Raychem RPG achieves significant milestone to facilitate faster execution in electricity distribution projects with its 'Make India' initiative

Retrieved on:

Tuesday, March 19, 2024

TE Connectivity, RPG, Raychem, Certification, CPRI, JV, Central Power Research Institute, KV, Head, Engineering, Vasai, RPG Group, PQ, Operation, Direct lending, Renewable energy

NEW DELHI, Mar 19, 2024 - (ACN Newswire) - Raychem RPG, established in 1989, is a 50:50 joint venture between TE Connectivity, U.S.A., and RPG Enterprises, India.

Key Points:

NEW DELHI, Mar 19, 2024 - (ACN Newswire) - Raychem RPG, established in 1989, is a 50:50 joint venture between TE Connectivity, U.S.A., and RPG Enterprises, India.
Raychem RPG is the imprint of a successful Indo-US bilateral relationship that has lasted for nearly four decades, the longest of its kind.
This marks a significant milestone and achievement, catapulting Raychem RPG to unprecedented heights within the EHVCA product portfolio.
Raychem RPG is the only organisation among its peers to have received the PQ test report following a rigorous process that took over a year to complete.

The impact of regulatory changes on rating behaviour

Retrieved on:

Tuesday, April 2, 2024

Długosz, Disagreement, Pi bond, Direct lending, Key, Research Papers in Economics, Finance Secretary (India), University of Oxford, STS, Journal of Economic Perspectives, International, American Economic Review, Life, Columbia Business School, British Academy of Management, Risk assessment, ABS, Rating, EBA, Development, Reputational damage, OBS, CRA, Bond credit rating, Cras, Journal of Monetary Economics, CDO, Becker, Paper, 2007–2008 financial crisis, Raja, University, Environment, Journal of Financial Economics, Perception, H3, Website, Securitization, Working paper, Market, Collection, Total, European Banking Authority, Quarterly Journal of Economics, BBB, Whetten, Column, ESMA, European Journal, Issuer, Asset quality, Information revolution, Federal Reserve Bank, OLS, Statistics, PDF, Private, ECB, Surety, Weighted-average life, CCC, European Commission, Social science, Journal of Financial Stability, JEL, Real, Bias, Journal, Research, Classification, Certification, Commission, Credit, The Journal of Finance, Literature, Karel Škréta, European Central Bank, AA, Finance Research Letters, Origination (telephony), Monetary economics, Section 5, Xia, Kraft Foods, Government, AAA, Mukherjee, Finance, Deku, DOI, White, Risk, IOSCO, MBS, OECD, Wang, Section 4, University Challenge 2013–14, Section 3, Ashcraft, Financial management, Accounting, Financial economics, Fannie Mae, Conference, Pressure, Central bank, Griffin, University of Michigan, Systematic review, EPRS, Freddie Mac, Loan, BCBS, Palgrave Macmillan, R2, Microeconomics, Quarterly Journal, Financial statement analysis, The Japanese Economic Review, Christian Social Union (UK), Green, University of Huddersfield, PSM, Management, Security (finance), Security, Civil service commission, Private placement, American Economic Journal, GFC, Reproduction, IMF, Small business, Trustee, Data

Abstract

Key Points:

Abstract
We examine rating behaviour after the introduction of new regulations regarding Credit Rating
Agencies (CRAs) in the European securitisation market.
There is empirical evidence of rating catering in the securitisation market in the pre-GFC period (He et al.,
2012; Efing and Hau, 2015).
Competition among
CRAs could diminish ratings quality (Golan, Parlour, and Rajan, 2011) and promotes rating shopping by
issuers resulting in rating inflation (Bolton et al., 2012).
This paper investigates the impact of the post-GFC regulatory changes in the European
securitisation market.
In 2011, in addition to the creation of
European Securities and Markets Authority (ESMA), a regulatory and supervisory body for CRAs was
introduced.
We examine how rating behaviours have changed in the European securitisation market after the
introduction of these new regulations.
We utilise the existence of multiple ratings and rating agreements between
CRAs to identify the existence of rating shopping and rating catering, respectively (Griffin et al., 2013; He
et al., 2012; 2016).
We find that the regulatory changes have been effective in tackling conflicts of interest between issuers
and CRAs in the structured finance market.
Rating catering, which is a direct consequence of issuer and
CRA collusion, seems to have disappeared after the introduction of these regulations.
There is empirical evidence of rating catering in the securitisation market in
the pre-GFC period (He et al., 2012; Efing and Hau, 2015).
Competition among CRAs could diminish ratings quality (Golan, Parlour,
and Rajan, 2011) and promotes rating shopping by issuers resulting in rating inflation (Bolton et
al., 2012).
This paper investigates the impact of the post-GFC regulatory changes in the European
securitisation market.
In 2011, in addition
to the creation of European Securities and Markets Authority (ESMA), a regulatory and
supervisory body for CRAs was introduced.
We find that the regulatory changes have been effective in tackling conflicts of interest
between issuers and CRAs in the structured finance market.
Rating catering, which is a direct
consequence of issuer and CRA collusion, seems to have disappeared after the introduction of
these regulations.
Investors who previously demanded higher spreads for rating agreements for a
multiple rated tranche, did not consider the effect of rating harmony as a risk in the post-GFC
period.
Regarding rating shopping, we find that the effectiveness of the changes has been limited,
potentially for two reasons.
Additionally, we also find that rating over-reliance might still be an issue, especially
Rating catering is a broad term and it can involve rating shopping.
They re-examine the rating shopping and rating
catering phenomena in the US market by looking at the post-crisis period between 2009 and 2013.
Using 622 CDO tranches, they also observe the existence of rating shopping and the diminishing
of the rating catering.
Firstly, our main focus is the EU?s CRA Regulation and its effectiveness in reducing
rating inflation and rating over-reliance.
To the best of our knowledge, this paper is the first to
examine the effectiveness of the EU?s CRA regulatory changes on the investors? perception of
rating inflation in the European ABS market.
Hence, the coverage and quality of our dataset constitutes significant addition
to the literature and allows us to test the rating shopping and rating catering more authoritatively.
The following section reviews the literature
on securitisation concerning CRAs and conflicts of interest, and outlines the regulatory changes
introduced in the post-GFC period.
Firstly, ratings became ever more important as the Securities and
Exchange Commission (SEC) 5 began heavily relying on CRA assessments for regulatory purposes
(i.e.
the investment mandates that highlight rating agencies as the main benchmark for investment
eligibility) (SEC, 2008; Kisgen and Strahan, 2010; Bolton et al., 2012).
issuers) as one of the main explanations for the rating inflation (He et al., 2011; 2012; Bolton
et al., 2012; Efing and Hau, 2015).
Bolton et al., (2012) demonstrate that competition
promotes rating shopping by issuers, leading to rating inflation.
The last phase, CRA III, was implemented in mid-2013 and involves an additional
set of measures on reducing transparency and rating over-reliance.
As mentioned above, rating inflation can be caused by rating shopping
In order to be eligible to use the STS classification, main parties (i.e.
The higher the difference in the number of ratings for a
given ABS tranche, the greater the risk of rating shopping.
Alternatively, the impact of the new
regulations could be limited when it comes to reducing rating shopping.
This is because, firstly,
the conflict of interest between securitisation parties is not necessarily the sole cause for the
occurrence of rating shopping.
L is a set of variables (Multiple ratings, CRA reported, Rating agreement) that
we utilise interchangeably to capture the rating shopping and rating catering behaviour.
Hence, issuers are incentivised to report the highest possible rating and
ensure each additional rating matches the desired level.
All in all, our results suggest that
the new stricter regulatory measures have been effective in tackling conflicts of interest and
reducing rating inflation caused by rating catering.
Self-selection might be a concern in analysing the impact of the
new measures and investors? response with regard to the rating inflation.
This
result is in line with the earlier findings suggesting that regulatory changes have reduced investors?
suspicion of rating inflation and increased trust of CRAs.
Conclusion
Several regulatory changes were introduced in Europe following the GFC aimed at tackling
conflicts of interest between issuers and CRAs in the ABS market.
Utilising a sample of 12,469
ABS issued between 1998 and 2018 in the European market, this paper examined whether these
changes have had any impact on rating inflations caused by rating shopping and rating catering
phenomena.
We find that the
effectiveness of the changes has been more limited on rating shopping potentially for two reasons.
Tranche Credit Rating is the rating reported for a tranche at launch.

Comvest Partners Expands Direct Lending Platform Senior Team with Hire of David Gibson as Managing Director

Retrieved on:

Thursday, February 1, 2024

Finance, Consulting, Banking, Professional Services, Other Professional Services, Goldman Sachs, Bank of America, LaSalle Bank, GE Commercial Finance, Bank, Growth, Direct lending, Partner

Comvest Partners (“Comvest”), an operationally focused middle-market private investment firm, is pleased to announce that David Gibson has joined the firm as a Managing Director.

Key Points:

Comvest Partners (“Comvest”), an operationally focused middle-market private investment firm, is pleased to announce that David Gibson has joined the firm as a Managing Director.
Mr. Gibson is responsible for originating, structuring and managing debt investments for Comvest Credit Partners, Comvest’s direct lending investment platform.
“We are fortunate to have David on the Comvest Credit Partners team,” said Jason Gelberd, a Partner of Comvest and co-head of Direct Lending.
I look forward to building on my direct lending experience to help further advance Comvest’s growth.”

Synchrony Expands into Pet Resorts with CareCredit Offering at Destination Pet

Retrieved on:

Tuesday, January 9, 2024

Alternative medicine, Partnership, Direct lending, Synchrony Financial, Wellness, Pet, Health, SVP

STAMFORD, Conn., Jan. 9, 2024 /PRNewswire/ -- As part of an effort to expand deeper into the pet market, Synchrony (NYSE: SYF), a leading consumer finance company, today announced a multi-year agreement with Destination Pet, a premier provider of veterinary care and pet services, to offer its CareCredit health and wellness credit card as the "first look" financing solution at all Destination Pet locations nationwide, now including pet resorts. The agreement marks Synchrony's first-ever partnership with a pet resort group.

Key Points:

STAMFORD, Conn., Jan. 9, 2024 /PRNewswire/ -- As part of an effort to expand deeper into the pet market, Synchrony (NYSE: SYF), a leading consumer finance company, today announced a multi-year agreement with Destination Pet, a premier provider of veterinary care and pet services, to offer its CareCredit health and wellness credit card as the "first look" financing solution at all Destination Pet locations nationwide, now including pet resorts.
"Our partnership with Destination Pet not only solidifies our shared mission of improving the lives of pet families but is a significant milestone for Synchrony on our journey to broaden access to simple, flexible financing solutions for pet owners."
"Selecting a financing partner like Synchrony to streamline financing across the entire Destination Pet ecosystem will improve the experience for clients and furthers our commitment to becoming the go-to destination for pet care," said Jennifer Strickland Fowler, CEO, Destination Pet.
"We look forward to offering pet parents the option to pay for all of our services with CareCredit."

CURO Group Holdings Corp. Reports Third Quarter 2023 Financial Results

Retrieved on:

Thursday, November 2, 2023

Banking, Professional Services, Finance, Sale, Growth, Direct lending, NYSE, Flexity Outlook (Toronto), Bank, Real estate, Financial services, Video game

CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), an omni-channel consumer finance company serving consumers in the U.S. and Canada, today announced financial results for its third quarter ended September 30, 2023.

Key Points:

CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), an omni-channel consumer finance company serving consumers in the U.S. and Canada, today announced financial results for its third quarter ended September 30, 2023.
We continue to execute on our plan outlined at the beginning of the year, which resulted in meeting our expectations for the third consecutive quarter.
Provision for credit losses for the quarter was $49.0 million, a decrease of $14.7 million, or 23%, compared to the prior quarter.
Interest expense for the quarter was $55.8 million, an increase of $5.3 million, or 10.6%, compared to the prior quarter.

BMO Launches First Home Savings Account to Support Canadians' Homebuying Progress

Retrieved on:

Monday, November 6, 2023

Head, BMO Real Estate Partners, BMO, Real, Direct lending, Investment, Tax-free savings account, Savings account, RRSP, TFSA, Life insurance

The FHSA combines the benefits of a Registered Retirement Saving Plan (RRSP) and a Tax-Free Savings Account (TFSA).

Key Points:

The FHSA combines the benefits of a Registered Retirement Saving Plan (RRSP) and a Tax-Free Savings Account (TFSA).
FHSA contributions are tax deductible, earnings are tax-sheltered, and withdrawals are tax-free when used towards qualified first-time home purchases.
"Homeownership continues to be important to real financial progress, security and wealth creation for many Canadians and their families.
Customers can learn more about FHSAs and set up an account in a BMO branch, over the phone or through their investment advisor.

CM Regent Selects Betterview to Streamline Underwriting Efficiency

Retrieved on:

Thursday, October 12, 2023

Intelligence, Automation, Fintech, Risk, Insurance, SAN, Direct lending, Noise, CM

CM Regent employs the Betterview Property Intelligence Platform as a central hub for data and insights to maximize underwriting efficiency.

Key Points:

CM Regent employs the Betterview Property Intelligence Platform as a central hub for data and insights to maximize underwriting efficiency.
CM Regent sought a partner to serve as a single source of truth for property risk.
“Using Betterview saves time, which saves money,” said Brett Eater, vice president – chief underwriting officer, CM Regent.
We’re excited to save CM Regent time through automation, and ultimately help improve their expense ratio.”

Veterinary Growth Partners Selects Synchrony's CareCredit as Financing Solution for Members

Retrieved on:

Tuesday, October 10, 2023

Partnership, Senior, Veterinarian, NYSE, VGP Universal Kingdom, Marketing, Pet, Synchrony Financial, Direct lending, Online shopping, Pet industry, VGP, Synchrony

STAMFORD, Conn., Oct. 10, 2023 /PRNewswire/ -- Synchrony (NYSE: SYF), a leading consumer finance company, has announced that its CareCredit health and wellness credit card will now be a financing option for members of Veterinary Growth Partners (VGP), a veterinary management services organization that connects veterinary practices with resources that maximize efficiency and optimize profitability. VGP's 7,300 plus members will have access to CareCredit's suite of financing options, innovative digital features and marketing solutions to help grow their veterinary practices.

Key Points:

VGP's 7,300 plus members will have access to CareCredit's suite of financing options, innovative digital features and marketing solutions to help grow their veterinary practices.
"Through this collaboration, we're broadening access to simple, flexible financing solutions, and ensuring providing seamless and efficient service for both veterinary practices and pet owners."
For more than 30 years, CareCredit has partnered with veterinary practices to streamline financial workflows and payment processes, reducing accounts receivable and improving cash flow.
CareCredit is offered in more than 25,000 veterinary practices across the U.S. For more information, please visit www.carecredit.com

Fraud Protection Network Makes the 2023 Inc. 5000 List

Retrieved on:

Wednesday, August 23, 2023

FPN, Database, Growth, Microsoft, Direct lending, Chobani

AVENTURA, Fla., Aug. 23, 2023 /PRNewswire/ -- Inc. revealed that Fraud Protection Network (FPN) ranked No. 1880 on its Inc. 5000 list of America's fastest-growing private companies. The prestigious ranking provides a data-driven look at the most successful companies within the economy's most dynamic segment—its independent, entrepreneurial businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other household name brands gained their first national exposure as honorees on the Inc. 5000.

Key Points:

With Three-Year Revenue Growth of 299 Percent, Fraud Protection Network Ranks No.
1880 Among America's Fastest-Growing Private Companies
AVENTURA, Fla., Aug. 23, 2023 /PRNewswire/ -- Inc. revealed that Fraud Protection Network (FPN) ranked No.
1880 on its Inc. 5000 list of America's fastest-growing private companies.
"FPN is honored to be recognized as one of Inc.'s 5000 fastest-growing private companies in America," said CEO Ed Margolin.

Hi2 Global Private Credit Fund Awarded Hedgeweek 2023 Best Emerging Manager: Direct Lending

Retrieved on:

Wednesday, August 23, 2023

NEW YORK, Aug. 23, 2023 /PRNewswire/ -- After achieving robust performance in the volatile year of 2022, Hi2 Global Private Credit Fund (the "Fund") has been awarded the Hedgeweek 2023 Best Emerging Manager Award in the category of Direct Lending.

Key Points:

NEW YORK, Aug. 23, 2023 /PRNewswire/ -- After achieving robust performance in the volatile year of 2022, Hi2 Global Private Credit Fund (the "Fund") has been awarded the Hedgeweek 2023 Best Emerging Manager Award in the category of Direct Lending.
Powered by Hedgeweek, a leading information provider for the hedge fund community, and with fund manager data provided by Bloomberg, the Award rewards fund performance and service provider excellence within hedge fund emerging managers.
Winners are recommended by Bloomberg based on 2022 Calendar Year fund performance, and voted by the hedge fund community.
The Fund is also the winner of Hedgeweek 2021 Best Emerging Manager - Credit Hedge Award.