ISSUE #4
2025 and the Slalom Course for Lenders
It s a new year and the changes are coming fast. The most expensive wildfire in US history is yet uncontained and will impact a major metropolis and the fire insurance market for years. The new administration's policies will hopefully include relief for banks, who face a savvy private credit industry that's eating up market share. Finally, it's hard to escape the rapid encroachment of new technology, including AI and cyber threats, into every aspect of commerce. Opportunity and risk abound - let the race to Greenland begin!
Interesting Times delivers curated articles about events and trends that lie outside lenders conventional view of borrower risk. It helps them understand how changes in the global macroeconomy impact their lending and risk mitigation strategies.
LA Wildfire Insurance-Loss Estimates Approach $40 Billion
Wildfire losses in Los Angeles have surged to an estimated $40 billion, doubling initial projections as fires remain uncontrolled. Analysts highlight major exposure for insurers like Allstate and Chubb, with global insurers like Tokio Marine also impacted. Over 12,000 buildings are destroyed, 24 lives lost, and economic ripple effects include tightening of supply chains and housing markets, as well as a potential drag on U.S. payrolls.Read More >>
Private Markets Monthly, December 2024: Private Credit Trends To Watch In 2025
Private credit is rapidly expanding beyond its niche roots, leveraging technology and lack of regulatory oversight to address complex funding needs, from infrastructure projects to low-carbon transitions. Institutional and retail investors seek the blend of public and private capital, fostering novel structures and broad diversification. Private credit is broadly disrupting traditional lending markets and poses growing competition to banks and credit unions. Read More >>
2025 s Logistics Risks Include Tariffs, Labor Strife
2025's logistics landscape faces multiple challenges across all transport modes. Port workers await contract ratification, while Trump's proposed tariffs prompt companies to frontload inventory. Mexico-US rail capacity is strained, trucking rates are expected to rise after two years of decline, and labor disputes threaten FedEx and Canada Post operations, with limited alternatives for remote Canadian deliveries. Read More >>
2025 Cybersecurity and AI Predictions
Cybersecurity and AI are racing ahead in tandem, with more risk for those lacking technology expertise. A shortage of 4.8 million cybersecurity pros and risky AI adoption are key drivers of emerging risks that include rogue AI, deceptive plugins, digital deepfakes, system vulnerabilities and AI regulations. The threat surface is larger than ever, requiring lenders to adapt to the new risks with informed lending practices and people. Read More >>
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