I met you,
briefly, in Boston during the Murphy-Wenzel lectures at the Omni
by way of background, I manage all aspects of funding for a large
commercial finance company... I have been extremely active in
the wholesale capital and securitization markets for the past
10 years raising well over $2 Billion of structured debt credit
facilities, securitizations and warehouses. Consequently, I have
a great vantage point to observe the anecdotal behavior of the
global money center banks. From 2004 through most of 2007 these
shops were throwing money at their clients. That approach to lending
ceased in mid-to-late 2007 and the wholesale funding and securitization
markets remained relatively dormant until early 2010.
believed this was going to continue and that the memory of 2007-2008
would remain planted in bankers minds. I also expected a long
period of deflation as a result. However, what I am observing
presently is that the TBTFs are becoming much more aggressive
in their pitches to clients and offering substantially better
credit terms and rates on debt facilities. It appears the excess
reserves are [slowly] starting to flow from the money centers
to targeted segments of the economy.
this continues is anyones guess.