Bank involvement is creating pricing mayhem in direct lending, speakers say

Wednesday, February 10, 2016

Over 150 private debt specialists attended Creditflux's sell-out direct lending event in which panellists made the point clear: inefficiencies in European loans will persist as long as banks continue to dominate the direct lending market.

TAGS: Direct lending Pricing

Comment by: Anonymous. Posted 8 years ago [2016-02-11 10:00:34]

Could it be that funds are mispricing risks too, ie too wide spreads? Moreover this is called competition in capitalistic markets ... If those banks are wrong and they mispriced risks, they will incur huge losses in the future and new opportunities will arise for distressed investors ...

Comment by: Anonymous. Posted 8 years ago [2016-02-10 23:53:01]

But .... the business story for "direct lending" is that banks have stepped away from lending due to capital shortfall and regulatory oversight problems. Are the speakers claiming the contrary statement that banks have too much money to lend?!

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