ISSUE #2

Election Results Raise Risks and Opportunities for Lenders

Lenders have weathered a litany of disruptions to maintain a generally positive lending environment over the past few years. The reelection of Donald Trump adds several new factors to contend with, including regulatory reform, pro-growth policies and easier M&A, while also introducing uncertainty around trade policy, interest rates and inflation. Deregulation could help level the playing field for banks facing increased competition from private credit players.

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.

For private credit, a Trump presidency may be a double-edged sword

While many private equity and private credit executives have supported the Trump campaign, the expected lower regulatory hurdles for financial firms may help banks relative to private credit lenders. Private credit’s light regulatory burden is far lighter when compared to traditional banks and credit unions. Less regulation for all lenders should help level the competitive playing field. Read More >>

Supply chain impact of incoming tariffs likely to vary from country to country

Supply chains are especially vulnerable to policy changes under Trump. His elevated import tariffs and immigration plans could raise prices, spur inflation and pressure the Fed to tighten monetary policy. He plans to reduce imports and restrict Chinese investments, while deregulating oil production and increasing sanctions, likely elevating global oil prices. Supply chain volatility will require many borrowers to adapt quickly to changes and disruptions. Read More >>

Execs from 6 banks weigh in on impact of Trump’s election

Bank executives are cautiously optimistic about a second Trump presidency. Most anticipate friendlier capital requirements and M&A restrictions from the Trump administration, as well as a likely pro-growth agenda. Others are concerned about potential negative impacts from tariffs, higher interest rates and inflation. Most are optimistic about eased regulatory burdens but remain cautious about challenges in capital planning and economic volatility. Read More >>

Ransomware attacks caused prolonged disruptions in October

Despite a decline in reported ransomware attacks in October, several high-profile incidents caused weeks-long disruptions, especially in healthcare, infrastructure and small/medium businesses. Data breaches accessed sensitive information by ransomware groups like Ransomhub and Interlock, causing major operational setbacks for victims. Lenders should be prepared for more frequent and sophisticated cyberattacks against borrowers and their data assets. Read More >>