Active Portfolio Management
Our clients have found loan sales to be an important portfolio management tool through all phases of an economic cycle. A loan or portfolio sale is not always the best solution, but we can help you identify when it is. Our Loan Sales Advisory Services support active portfolio management, whether it is selling a single non-performing healthcare credit to avoid foreclosure, or a portfolio of hotel loans to reduce sector concentration. A superior market perspective and a holistic view of your institution’s exposure are essential components of active portfolio management.
We help our clients achieve long-term success
We help our clients access liquidity and reposition loan portfolios strategically for growth and long-term success. Our Loan Sales Advisory Services support the active portfolio management approach that leading institutions are pursuing to:
- Respond to changing market conditions
- Address regulatory guidance and requirements
- Reduce credit risk
- Manage headcount and staff workload
- Optimize asset class and sector exposures
An active credit portfolio management approach assesses the strategic implications for the lending portfolio, and recommends actions to business leaders.
Performing loan sales
The leading financial institutions have developed a greater appreciation of how active portfolio management can facilitate growth and address scrutiny from regulators. These institutions engage DebtX to execute sales of performing loans for several reasons including:
- Deploying capital more strategically
- Distributing excess loan origination capacity
- Reducing concentration exposure
- Divesting non-core portfolios following M&A
- Proactively managing compliance with regulatory requirements
Non-performing loan (NPL) sales
Financial institutions sell non-performing loans to rapidly dispose of unwanted assets, often at a gain to book values. Loan sales reduce expenses related to loan workouts and in some cases, particularly for smaller institutions without dedicated workout teams, are the preferred resolution for troubled assets.
Loan sales enable bankers to focus on profitable lending activities rather than engage in protracted workout negotiations with uncertain outcomes. Selling problem loans:
- Frees up reserve capital
- Eliminates earnings drag
- Aligns the balance sheet and income statement with the institution’s strategic goals
- Leads to improved stock prices