Financing firms are businesses that provide financial services, including loans, credit, and investment assistance, to individuals and companies. They play a crucial role in the economy by facilitating access to capital for various purposes, such as purchasing assets, funding operations, or investing in growth opportunities. Financing firms can take various forms, including banks, credit unions, private equity firms, venture capital firms, and alternative lenders. They assess borrowers’ creditworthiness and develop financial products tailored to meet specific needs, often offering terms and conditions that vary based on risk profiles. Additionally, financing firms may engage in the underwriting of securities, manage portfolios, and provide advisory services, contributing to the efficient allocation of resources in the financial markets.
Mary Beth Fisher, a senior fixed income strategist at Santander, has observed a concerning trend of increasing delinquency rates. This shift in collateral performance is particularly evident in Commercial Real…