Hardly a boring topic…
Despite a starting time toward the end of a long day, Forum attendees were unusually alert for the general session, “Maintaining Liquidity in the Current Credit Environment.
PNC’s economists predict that the U.S. economy will pull out of its spiral at the end of the year in part because of the Fed/Treasury efforts. “How much is real growth and how much is from the stimulus? How do you benchmark it against the past?” said Richard DeVore, Executive Vice President for The PNC Financial Services Group and Chief Credit Officer for National City.
What forms of capital are available today? DeVore said for retailers who need short-term financing with revolving credit facilities, borrowing base deals are available but not so for cash flow while factoring is sideways. For long-term financing of debt, there is no institutional and high-yield, unsecured and equity loans available right now, he said. “If a deal happens, it’s likely asset-based and I know you don’t like to hear that because it has the most controls on it,” he said. Of the seven retail finance deals that have occurred this year, only one was unsecured, he said.
Tags: Liquidity, Payments, Retail, Richard DeVore
