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...“Moreover, we believe many are facing legacy portfolio issues because they aggressively deployed capital in sponsor-backed loans between 2019 and 2021, a period when heightened competition caused financing...
...Apollo may be interested in acquiring SVB’s loan book or lending businesses but is not interested in directly acquiring a stake in a potential new SVB, according to a person familiar with its thinking....
...Is the resulting long-short portfolio one we would actually like to hold with our own money? Of course not!...
...They warned that the loans put the broader portfolio at risk and the borrowing costs could eventually hamper returns for the entire fund....
...Blackstone took control of the trust in 2013 and two years later dramatically expanded it with the purchase of a $4.6bn portfolio of commercial mortgage loans from GE Capital....
...Advisers to large investors have also been checking contracts to assess whether they can stop firms from using net asset loans — secured against their asset portfolios — to return cash without their consent...
...These so-called net asset value loans are being dubbed “defending the portfolio” and growing in prominence as financial markets tighten....
...“It’s on the sponsor to defend their portfolio,” said John Kline, managing director of New Mountain Capital....
...One way that has come is in the form of great deals on loan portfolios, as lenders look to boost their liquidity after the turmoil at First Republic and Silicon Valley Bank....
...Earlier this year, Vista hired Goldman to arrange a $1.5bn loan secured against its portfolio companies, the FT has previously reported. Some of the money was used to pay investors....
...These include so-called net asset value financing, which involves a buyout firm borrowing against a portfolio of assets....
...In the second quarter, Apollo’s private credit business originated $23bn in loans. It has targeted making about $100bn of such loans this year....
...I hold more Tier 2 [capital] as a percentage of assets than you do, and if you want to see my portfolio, [you can] click on the website and my portfolio is online....
...Rating agencies typically treat preferred stock deals more favourably than run-of-the-mill loans....
...Blackstone’s $246bn-in-assets credit arm is considering the purchase of some of SVB’s larger loan portfolios that it deems mature and of adequate scale....
...Second, there are big mark-to-market losses in the securities and loan portfolios. First Republic’s most recent estimate of those losses, at the end of last year, was $27bn....
...Carlyle, meanwhile, purchased collateralised loan obligation manager CBAM Partners. Traditional asset managers have got in on the action too....
...its loan....
...Blackstone, KKR, Ares Management and Carlyle Group are also examining SVB’s loans portfolios. The groups are not looking to buy SVB as a whole....
...Vivion has an investment property portfolio it values at €3.7bn split between Germany and the UK, where it owns a portfolio of hotels up and down the country....
...FT Alphaville decided to take a look at how Vivion reported the shareholder loans in its balance sheet....
...Under the terms of the deal, a branch of the US group paid an initial 112bn rupees ($1.4bn) to acquire a portfolio of non-performing loans originally valued at 480bn rupees....
...Markets may wonder how the existing portfolio will withstand current stresses. Even as the group has shifted away from lumpy buyout profits, those can be massive....
...The debt financing includes a $4.55bn term loan and $4bn secured bond, as well as loans the banks plan to hold themselves....
...The merger announced on Wednesday is aimed at creating a mega platform in private credit just as rising interest rates have made senior loans with floating rates increasingly attractive....
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