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SFNet Debuts New ’Market Pulse’ ABL Performance Report

November 12, 2019, 08:55 AM
Filed Under: Industry News
Related: SFNet

SFNet has introduced SFNet Market Pulse, a periodic report that will inform lenders about emerging economic trends likely to affect secured lending and their borrowers’ industries over the next one to two quarters, according to a an announcement in the organization's publication, TSL.

Through the curation and display of proprietary data from SFNet and other leading indicators of market behavior, together with a clear narrative highlighting areas of risk and opportunity, the SFNet Market Pulse promises to bridge the gap between the secured finance market and the broader economic landscape. The report is produced in collaboration with Keybridge, a research consultancy comprised of economists and policy experts.

The ten-page report shows that portfolio performance remains historically strong but is weakening. In Q2 2019, asset-based lending portfolio performance deteriorated slightly but remains historically strong.

According to SFNet data on bank ABL, non-accruals as a percentage of total loans outstanding ticked up from 0.42% to 0.48%, and gross write-offs as a percentage of outstandings likewise inched up one basis point to 0.03%.

ABL portfolio performance remains stronger than for overall commercial & industrial lending, where Q2 delinquencies and charge-offs stood at 1.05% and 0.32%, respectively.

For both ABL and overall commercial & industrial lending, delinquency and default rates are almost as low as they’ve ever been. Looking ahead, however, portfolio performance is likely to deteriorate along with the overall US and global
economic outlook.

At the SFNet 75th Annual Convention (Nov. 13-15), Dr. Robert Wescott will offer an in-depth look at the report during the Friday morning Town Hall.

The SFNet Market Pulse report is underwritten by the Secured Finance Foundation. To access the report, click here.

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