Captive finance companies forecast to face “normal” levels of operation as headwinds build

Many major US captive finance companies are expected to continue to slowly revert to more normal levels of operation (reducing asset quality and profitability)  driven by higher competitive pressures, moderately eased underwriting standards and higher regulatory and compliance costs. Despite the expectation of continued performance “normalization”, Fitch Ratings sees captives likely maintaining solid performance overall, while continuing to benefit from diversified funding sources and less asset encumbrance relative to pre-2008. These factors, along with continued stable and/or improving financial conditions for parent companies supports the current ratings assigned to US captive finance companies (fincos).

Captive finance companies forecast to face “normal” levels of operation as headwinds build

May 18, 2015

Many major US captive finance companies are expected to continue to slowly revert to more normal levels of operation (reducing asset quality and profitability)  driven by higher competitive pressures, moderately eased underwriting standards and higher regulatory and compliance costs. Despite the expectation of continued performance “normalization”, Fitch Ratings sees captives likely maintaining solid performance overall, while continuing to benefit from diversified funding sources and less asset encumbrance relative to pre-2008. These factors, along with continued stable and/or improving financial conditions for parent companies supports the current ratings assigned to US captive finance companies (fincos).

Macquarie in major transportation acquisition

Macquarie Group has acquired Advantage Funding Management Inc (Advantage Funding) from Marubeni America Corporation. Under the agreement, Advantage Funding will become a fully owned subsidiary of Macquarie’s Corporate and Asset Finance group (CAF).

Macquarie in major transportation acquisition

May 14, 2015

Macquarie Group has acquired Advantage Funding Management Inc (Advantage Funding) from Marubeni America Corporation. Under the agreement, Advantage Funding will become a fully owned subsidiary of Macquarie’s Corporate and Asset Finance group (CAF).

UK Construction sector boom fuelled by 19% growth in leasing

The total turnover of the UK construction sector has jumped another 6% in the last year to £218 billion* and is now up 20.7% on its £180 billion low during the depths of the recession in 2009-10. BNP Paribas Leasing Solutions (BNPLS) stressed that the surge in turnover has come from across the housebuilding, commercial property development, and infrastructure sectors.

UK Construction sector boom fuelled by 19% growth in leasing

May 05, 2015

The total turnover of the UK construction sector has jumped another 6% in the last year to £218 billion* and is now up 20.7% on its £180 billion low during the depths of the recession in 2009-10. BNP Paribas Leasing Solutions (BNPLS) stressed that the surge in turnover has come from across the housebuilding, commercial property development, and infrastructure sectors.

Americas

US businesses poised to increase their credit demand as aircraft, trucks & materials handling lead the way

Apr 13, 2015

Equipment and software investment in the US was subdued in the fourth quarter of 2014, slowing from 10.5% in Q3 to just 1.6% in Q4. Growth for all of 2014, however, was still a solid 5.8%, and even with a slightly slower expected pace of growth in 2015. However, investment in equipment and software is forecast to grow 5% in 2015 – led by the aircraft, trucks and materials handling sectors.

Asia Pacific

Australia’s retailers predicted to be hit by lease accounting changes

Apr 22, 2015

Australia's fastest growing retailers face a hit to their bottom line profits under proposed accounting rules that will force them to bring more than A$40 billion worth of leases onto their balance sheets for the first time. Under the latest changes to lease accounting rules put forward by the International Accounting Standards Board (IASB), retailers such as Woolworths, Wesfarmers, Myer, David Jones, JB Hi-Fi, Harvey Norman, Specialty Fashion and Premier Investments will have to calculate the net present value of future lease commitments and recognise them as debt on their balance sheets.