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Syndicated Loans - Australian names look to Asia

By: Bernard Kellerman | posted August 13th, 2009 15:27

The number of club loans written at the start of the year dropped away sharply as liquidity became a real issue. Activity is now returning, with Asian-backed forward start facilities gaining popularity.

Syndicated bank loans were seen as the financial lifeline for starving corporates a year ago, before fading in Q4 of 2008 and the first quarter this year. Big four advisory firm KPMG, reviewing the corporate finance landscape over the past 12 months, confirms that there was a sharp decline in syndicated loan volumes, starting in the second half of calendar year 2008 and continuing into 2009.

Thomson Reuters came to much the same conclusion, noting: “Only five loan facilities reached general syndication close in Australia in the opening quarter of 2009. First quarter volume totaled only US$3.3 billion compared to US$16.5 billion in the first quarter of 2008.”

Citi's Josh Williamson - Beating expectations

By: Bernard Kellerman | posted August 13th, 2009 15:00

At the halfway point of 2009, Citi's chief economist, Josh Williamson, gazes into his crystal ball to give Bernard Kellerman a few predictions for the rest of the year.

The timing of the RBA's next increase has been a topic of some speculation, now that it looks like we’re entering a more “normal” cycle. What is your outlook for the rest of the year?

What we’re seeing is a massive and wide-ranging policy stimulus, which is much more decisive than what we saw in the early stages of the Great Depression. That’s actually underpinning recovery, and there are early signs that the worst, economically speaking, is behind most economies.