Commercial Lending Review articles from December 2000

Commercial Lending Review archives from December 2000

Internet Exchanges for Trading Commercial Loans.(Brief Article)
December 22, 2000... In the beginning, there was loansale.com. Back in 1997, the Web site aspired to provide updated bids and offers to buyers and sellers of leveraged and highly leveraged loans. Four years is an epoch in the history of the Web, and Loansale.com...

Rethinking the Credit-Loss Distribution: The Implications for RAROC Modeling.(Brief Article)
December 22, 2000... Recent years have seen the refinement and acceptance of credit-risk models as a commercial banking risk-management tool. Building on the VAR (value-at-risk) approach developed to quantify market risk, today's risk-adjusted return on capital...

Loan Trading on the Internet: Myth or Reality?
December 22, 2000... Since its inception approximately 15 years ago, loan trading (par and distressed) has been the exclusive province of financial institutions and individual traders. This is largely due to the relative complexity of the instruments involved and...

Risk Management in the Internet Age.
December 22, 2000... The patterns of business-to-business (B2B) relationships and transactions are being fundamentally reshaped by the revolutionary impact of Internet-enabled commerce. As a crucial enabler of B2B activities, the corporate-lending and...

Documenting Loans for Leveraged Buildups.(Statistical Data Included)
December 22, 2000... A leveraged buildup (LBU) can best be described as the consolidation of an industry financed with borrowed funds accomplished by the formation or acquisition by an investor group of a platform company followed by the acquisition of multiple...

Trends in the Small-Business Marketplace.
December 22, 2000... The banking industry has invested millions of dollars and toiled untold hours to create an infrastructure, e-commerce strategies, marketing programs, training systems, and branding approaches to draw the more than 24 million small businesses...

Best Practices in Business Appraisals.
December 22, 2000... An appraisal determines the present and future rewards of owning all or part of a business. It captures the value of both the tangible and intangible assets for parties seeking a capital infusion. This article will describe the elements of a...

Trends in Commercial Mortgage Loan Pricing.
December 22, 2000... Pricing methods for commercial mortgage loans are evolving. This $1.5 trillion market typically prices between $250 billion to $450 billion of new originations and refinancings per year. A small portion of these loans is priced in the public...

Ten Challenges Facing Community Banks.
December 22, 2000... Consider the banking industry's recentrecord: * Nationwide banks have been created. * An insurance company and a bank holding company merged to form the nation's largest financial services company. * The number of FDIC-insured banks declined...

Giving Notice of the Sale of Collateral: Complying with Article 9's Notice Requirements.
December 22, 2000... When lenders choose to take collateral to secure their loans, they anticipate that, if the borrower defaults, they will be able to recover the loaned funds from the sale of the collateral. The road leading from being a secured creditor to...

Using the Cash Flow Statement to Improve Credit Analysis.(for loan applicants)(Tutorial)
December 22, 2000... You are a loan officer examining an application for a business loan. You ask yourself: "If I approve this loan, what is the likelihood that the borrower will make timely interest payments and repay the loan when it falls due?" Since your...

Accounting for Sales of Real Estate.(management techniques)(Tutorial)
December 22, 2000... The application of generally accepted accounting principles to real estate sales transactions is promulgated in the Statement of Financial Accounting Standards (SFAS) No. 66, "Accounting for Sales of Real Estate." SFAS No. 66 addresses the...

Supreme Court Diminishes Restrictions on Transfer of Assets.(cases information and effects)(Brief Article)
December 22, 2000... In June 1999, in a sharply divided five-to-four opinion in Grupo Mexicano de Desarrollo, S.A. v. Alliance Bond Fund, Inc., the U.S. Supreme Court determined that federal district courts cannot freeze a defendant debtor's assets pending final...

Case 00-4: A Vote to Die For.(financial services legal information)
December 22, 2000... Solving crime through knowledge of legal developments in commercial lending. The air held a damp cold rancor that seemed to blanket the rustic tenements of the Lower West Side. As the weathered door to the three-story walk-up creaked...