Funding experts are predicting 2018 may be similar to 2017 when it comes equipment leasing deals, according to a new article in Equipment Leasing & Finance magazine.
The article by Susan L. Hodges looks at the state of funding in 2018, with this year's pickings possibly being equally slim to last year if interest rates remain relatively flat and demand for money doesn't grow. Pricing is also expected to remain extremely competitive, Hodges writes, as strong originators command top dollar for the deals they choose to sell.
Looking back to 2017, “when we saw a regular deal-flow transaction, buyers jumped all over it,” said Sera Oliver, vice president of capital markets for Key Equipment Finance. “I even encountered cases where I went back to a source to say yes, we could do the pricing, and was told that someone got back to them the day before with an offer to do 20 basis points better.”
Oliver, one of four capital markets leaders interviewed for the article, went on to say that new players have become an important part of the investor pool on Key Equipment Finance's sell side. “A lot of them are small companies with open balance sheets, and they’re writing fairly large checks,” she says. “They have no exposure issues, their turnaround time is fast and they become repeat customers. And while this is all positive on the syndication side, these are also the companies I compete with on the buy side.”
Learn more in the full article: