tag:blogger.com,1999:blog-1227919517269937208.post8104508549685046509..comments2023-09-17T08:37:58.006-06:00Comments on The Good News Economist: More Convincing Reports Forecast A Jobs ReboundEldon Masthttp://www.blogger.com/profile/15444008509086050220noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1227919517269937208.post-31672026473527162352009-11-24T14:43:57.259-07:002009-11-24T14:43:57.259-07:00Bill,
I think that some banks may continue to hoa...Bill,<br /><br />I think that some banks may continue to hoard cash, but I do think risk appetite is now on the increase. If your particular banks don't start loosening the strings -- the money from the sidelines will come from other quadrants. In particular, IPOs and shelf registrations are on the increase and in terms of the total corportate M&As that are actually closing since the beginning of the year, I believe you should be seeing an uptick.<br /><br />My best advice for consumers and corporations whose banker is not lending... find another bank... in this climate you *will* find a banker to get the deal done... it just might not be the banker, VC, or mezzanine gal you are use to doing business with... and (un)fortunately that probably is a good thing.Eldon Masthttps://www.blogger.com/profile/15444008509086050220noreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-49466751132347409202009-11-21T05:53:37.511-07:002009-11-21T05:53:37.511-07:00GNE,
I meant credit for mergers and acquisitions....GNE,<br /><br />I meant credit for mergers and acquisitions. If you look at the legal periodicals, you'll see lots of reports of deals that die because companies can't get financing for the transactions. I'm wondering if the flight to T-Bills and hence negative returns is a sign that banks believe they need to keep a large cash balance.Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-71774465575200102172009-11-20T21:46:59.702-07:002009-11-20T21:46:59.702-07:00Bill,
I am not sure I completely understand your ...Bill,<br /><br />I am not sure I completely understand your definition of "corporate transactions." In fact if you are referring to "US Domestic Debt Sold to corporations, the data shows that there is no longer a dearth. See the chart here:<br />http://www.bloomberg.com/apps/cbuilder?ticker1=USFICORP%3AIND<br /><br />If you look at the 3 or 5 year view, you can clearly see "the freeze" of transactions from July to mid-November of last year, but quickly thereafter you'll note a return to seasonal levels since then.<br /><br />Perhaps I am misunderstanding your definition of corporate transaction?<br /><br />With respect to total credit across all commercial banks, I find that the following the data in <a href="http://research.stlouisfed.org/fred2/graph/?s%5B1%5D%5Bid%5D=TOTBKCR#" rel="nofollow">this fed chart</a> to be most helpful. You can see the recent dip, but note a small tail UP just recently.Eldon Masthttps://www.blogger.com/profile/15444008509086050220noreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-43221423748686699522009-11-20T17:59:39.639-07:002009-11-20T17:59:39.639-07:00GNE,
I'd like you thoughts on the dearth of c...GNE,<br /><br />I'd like you thoughts on the dearth of credit for corporate transactions. We see very little easing of credit for leveraged transactions. When do you think the banks will start lending again? Are they more interested in keeping their balance sheets full of the TARP cash?Billhttps://www.blogger.com/profile/06910619601367464068noreply@blogger.com