The Loan Trading group is focused on providing liquidity to non-securitized loans, with the goal of helping financial institutions manage their loan portfolios as efficiently as their bond portfolios.
The Loan Trading Group brings over thirty years of experience in capital markets, including the sale and securitization of over $25 billion of loans. This experience, on both the buy side and sell side, allows the Loan Trading group to provide a unique perspective and turnkey service on whole loan transactions. The following services are offered through Loan Trading:
- Market intelligence on current trading activity in a wide variety of loan types:
- Residential mortgage loans;
- Commercial real estate and C&I loans and leases;
- Consumer loans, including autos, credit cards, and student loans;
- Across the credit spectrum, from performing loans to scratch and dent pools to non-performing loans.
- Significant experience structuring, negotiating and placing pools of loans;
- Loan portfolio analysis – by loan type or for entire portfolios:
- Collaborative approach to development of portfolio management strategies that meet your firm’s objectives
For banks needing liquidity, loan sales can be beneficial in several ways:
- Manage interest rate risk by reducing exposure where appropriate;
- Manage credit risk through strategic sales;
- Improve capital ratios by shrinking the balance sheet.
Many banks have very low loan demand and accelerating cash flows from their bond portfolio. Loan acquisitions offer several benefits for banks with liquidity:
- Pools can be created to fit specific geographic and credit preferences;
- 100% due diligence prior to funding any purchases;
- Higher yields than organically originated loans, in most cases;
- Faster and more efficient method to grow loan portfolio.
Whether you are wanting to grow your loan portfolio or looking for sources of liquidity, ICBA Securities’ Loan Trading Group can assist you through the process. By leveraging our 4,500 institutional accounts, we can help you meet your goals by helping you manage your loan portfolio.
For additional information, please contact your account representative or the Loan Trading Group directly: