Sub lines: Is evolutionary change afoot?

Introducing the first installments of our six-part feature on the subscription credit line market.

Sub lines: We have posted the first two parts of a six-part feature on the subscription credit line market: “Part 1: The shifting landscape for subscription credit” and “Part 2: Take it to the limit.”

Even if you think you’ve read everything there is to know about what’s been going on in the subscription credit facility market since the onset of the covid-19 crisis, I think you’ll find some valuable insights here, including from one of the market’s biggest lenders, Wells Fargo (whose head of asset management Jeff Johnston was the only lender willing or able to go on record for this series).

Based on several months of reporting, including dozens of interviews with more than 20 market participants, the series identifies key trends that have emerged in recent months, which suggest the pandemic hasn’t just temporarily impacted market conditions, but may rather be catalyzing evolutionary changes.

Part 1 includes a look at the broad changes in terms for borrowers (“Post-covid terms for sub lines”), and takes a high-level look at the state of the market.

Part 2 looks at the issues banks faced (and that some still face) when the crisis hit, causing shifts in demand and supply that persist and continue to evolve today.

I hope you enjoy them, and as always, feel free to reach out with your thoughts.

Email prepared by Graham Bippart