"Corporate Credit Hard to Find"There does seem to be a case for funding companies, especially those which are smaller and medium-sized, in ways other than bank lending.
In my teaching capacity at the Dublin Institute of Technology, Dr Joe Coughlan and I recently completed our review of the group projects from the Postgraduate Diploma in Securitisation course. The question which the students were addressing was how securitisation technology could be used by a non-domestic bank wanting to fund Irish companies. The research and presentations showed that either of both of a CLO of loans to corporates or a trade receivables securitisation programme could be a valuable and profitable strategy.
The logic could be extended to many other countries.The UK, as the Deloitte study indicates, is a prime target.
Who is going to put this in place? The structuring and funding are not the hard parts-RHF could organise these. The difficulty is the origination. This might sound counter-intuitive when, as noted above, "credit is hard to obtain". However, it's difficult to get in front of the right customers without an existing relationship and, preferably, a known and trusted name. "No-one ever got fired for buying IBM" was a well-known dictum in the 80s.
What we need is an introducer/stakeholder-either
* A recognised bank which wants to break into new markets
* A respected firm such as an insurance broker
* Accountants or other high-profile advisors
Suggestions appreciated-there is a real business opportunity here.
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