A History of Lending: Part II- The Emergence of Modern Banking

By the late 16th and early 17th century, the traditional banking functions that we know today had developed.  The more standardized issuance of bank debt grew from the practice of goldsmiths owning private vaults where they would charge a fee to wealthy merchants for holding precious metals.  Eventually, the goldsmiths began to lend money out […]

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A History of Lending: Part I

The idea of lending arose as early as the birth of the written script. Tokens found at a 1929 excavation site of the once powerful city state of Uruk in Mesopotamia (ancient Iraq) are thought to represent commodities for an ancient system of what we now think of as lending.[1]  Uruk’s cultural and political influence […]

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The Future of Dodd-Frank

Dodd-Frank Wall Street Reform and Consumer Protection Act, better known as Dodd-Frank, is a multifaceted piece of financial regulation created in response to the 2008 financial crisis.  It was signed into law in 2010 by the Obama administration in order to increase oversight of the financial regulatory system.  It was the most sweeping rewrite of […]

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The Rise of Family Offices: Direct Investments

Single family offices currently account for more than $2.4 trillion in investable capital globally, making them sizable competition to the Private Equity and Hedge Fund industry.   As the number of high net worth individuals increases around the world, the family office industry continues to blossom, as does its investment strategy.  The current trend is a […]

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Middle Market Loans: An Opportunity for Higher ROI

  Middle market companies (with revenues between $50 million and $1 billion) and lower middle market companies (with revenues between $5 – $50 million) that are not able to access today’s high yield bond market are increasingly turning to smaller regional banks for their capital needs. When a bank is unable to provide adequate capital, […]

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The ABCs of CFLs and ABLs

The phrase “everything’s negotiable” holds especially true within the lending industry. From the coupon to the principal amount to the amortization schedule, no component of a loan fully avoids the realm of negotiation. Of course, these components all have significant tradeoffs usually related to the risk and return of the loan. A longer amortization schedule […]

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Self-Directed IRAs

Despite existing since the traditional IRA was created in 1974, Self-Directed IRAs (SDIRAs) have received relatively little attention over the past few decades. While SDIRAs are functionally the same as traditional IRAs, SDIRAs provide access to significantly more types of investments and give investors the ability to invest in a wider variety of asset classes. […]

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Consumer (P2P) Online Marketplace Lending vs. Middle Market Online Marketplace Lending

The marketplace lending industry has come under scrutiny following recent headline events including the stepping down of LendingClub CEO, Renaud Laplanche as well as the New York Department of Financial Services (NYDFS) probe into the underwriting and borrower verification process of LendingClub. While these events have diminished a number of investors’ short-term confidence in the […]

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