The Worst is Over (at least for the bankers)

by Matt McCleery

If there was ever any liquidity crisis in the commercial ship finance market, it seems to have blown over. Even banks that are nursing badly wounded portfolios are getting more and more deals done, giving us the impression that lenders are comfortable distinguishing between what will work and what might not. Despite the optimism, second tier names will continue to find it difficult to find financing until values strengthen or banks run out of “good” deals, but need to keep originating new loans.

Today, the mood amongst shipping bankers is both philosophical and positive. In the present market, they can pick and choose carefully the kinds of deals they do and then have superior leverage when negotiating terms and conditions. While there is no shortage of capital available “for the right project,” lenders have divided into two groups: those who view themselves as “corporate lenders” to organizations with diverse revenue streams and those banks who are taking a contra-cyclical approach to serving shipowners on an asset basis.

This is only an excerpt of The Worst is Over (at least for the bankers)

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