Regional and midsized US banks have stepped up efforts to sell off their loan portfolios, looking to raise cash and cut their capital requirements after the failures of Silicon Valley Bank and First Republic this spring.Private credit investors including Ares and KKR said they were being offered more portfolios in areas such as car and consumer loans, commercial real estate and speciality finance.
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US banks step up sales of loan portfolios to private lenders
“There are currently a lot of portfolios changing hands. It’s not just PacWest,” said Joel Holsinger, co-head of alternative credit at Ares. “This is the first inning. They [banks] are selling the assets that are their highest-quality assets and that are short-duration and floating rate.”
