Is there a brave bank out there?

by Kevin Oates

It happens with everything from tankers to tech stocks, investors follow a mob mentality and tend to over buy and over sell. In our view, this is precisely the case with lending to smaller owners. Banks have made a herd-like push to follow only corporate credits to find that there are not that many, and the ones that are demand sub-hurdle pricing. As a result, we think there may be a terrific opportunity to bank smaller owners with lower geared loans and larger owners with mezzanine finance. In either case, risk and reward might find themselves in harmony.

MOMENTUM
During May and June 2000, to coincide with Posidonia, many shipping publications issued articles and surveys showing the momentum in Greek shipping over the past 12 months. The issues covered ranged from the number of Greek shipowners ordering newbuilds, to the number of secondhand vessels acquired during the first five months of the year to the record amount of financing emanating from top Greek and international banks. It certainly appears as if Greek shipping is going from strength to strength and that the financial community is there to support it.

This is only an excerpt of Is there a brave bank out there?

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.