Phoenix Loan Survey Results Show Slow Growth and

PHILADELPHIA, December 09, 2020 (GLOBE NEWSWIRE) – Starting in the fourth quarter, the results of Phoenix Management’s ‘Lending Climate in America’ survey reveal a slow and choppy recovery from COVID-19.

While the majority of lenders surveyed seem to think the economic recovery from COVID-19 is slow and choppy, the outlook for the U.S. economy in the near term is improving steadily. The short-term grade point average (GPA) increased 33 percentage points to 2.05 from the third quarter 2020 grade point average of 1.72. The projected outlook for the US economy over the long term declined slightly (by 17 percentage points) to 2.43 from the previous quarter’s results of 2.60.

While real GDP grew at an annual rate of 33.1% in the third quarter of 2020, when asked if the United States would experience a continued recovery from the crisis, 86% of lenders expect to slow growth as things return to normal. due to the closure and the increase in COVID cases. Fourteen percent of lenders believe that despite the virus, the economy has pushed back demand and businesses should prepare for a sustained V-shaped recovery in the future.

Phoenix’s fourth-quarter 2020 “America’s Lending Climate” survey asked lenders to identify what they believe will pose the greatest risk to their institution over the next six months. The majority of lenders, 59%, expect the reduction in new business opportunities due to the economy and competition to be the greatest risk to their institution. Twenty-three percent of lenders expect deterioration in their portfolio to be their biggest risk, while 14% think reserving riskier loans with a lower risk / reward ratio will be their biggest risk in the future. over the next six months. Of the lenders surveyed, four percent chose other reasons to pose the greatest risk to their institution.

Lenders were also polled this quarter for their views on the effects of a possible second stimulus. The majority of lenders, 68%, believe that a potential second federal stimulus will have a negligible effect on the current lending climate. Twenty-seven percent of lenders believe it would increase competition among lenders with lower rates and more favorable terms for borrowers, while 5% believe it will lead to more restrictive covenants and higher rates.

“In Q4 / 20, lenders forecast a slow and choppy economic recovery from COVID-19 and a potential second stimulus is expected to have a negligible effect,” said Michael Jacoby, senior managing director and shareholder of Phoenix. “Lenders appear optimistic about the US economy in the near term as we head into 2021, but they remain cautious about the US economy in the long term.”

To view the full results of the Phoenix Lending Climate in America survey, please visit http://www.phoenixmanagement.com/survey/

About Phoenix:
For 35 years, Phoenix has provided smarter, operations-driven solutions to mid-market companies in transition. Phoenix management services® provides turnaround, crisis management and transition services, as well as specialist advice for struggling and growing businesses. Phoenix Transaction Advisory Services® provides revenue quality, operational diligence, business quality®, business integration, sales side business preparation and other transaction support. Phoenix capital resources® provides transparent investment banking solutions, including advice on mergers and acquisitions, complex restructurings and capital investments. Phoenix Capital Resources is a registered US brokerage firm and a member of FINRA and SIPC. Proven. Results®.

If you would like to learn more about Phoenix, please visit http://www.phoenixmanagement.com/ Where http://www.phoenixcapitalresources.com/

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