Consumer loan delinquencies and unemployment rates have historically followed similar paths. But the pandemic has upended that coupling, as consumer loan delinquencies have trended down while unemployment has increased significantly. … READ MORE >
Financial services
Private equity dealmaking surges, with gains in the middle market
After a quiet period set off by the coronavirus pandemic, private equity deal activity in the United States surged through mid-November as investment managers prepare for a possible tax policy change under President-elect Joe Biden. … READ MORE >
A Labor Department rule puts spotlight on ESG in retirement plans
The Labor Department recently affirmed that managers of retirement plans hold a fiduciary duty to evaluate investments over ESG criteria or other nonfinancial outcomes … READ MORE >
Federal Reserve eases Main Street Lending Program terms to encourage participation
The Federal Reserve on Friday announced changes to its Main Street Lending Program intended to make financing more readily available to small and medium-size businesses struggling amid a resurgence of the coronavirus. … READ MORE >
CHART OF THE DAY: The rise of the zombies
Since the start of the recession, the number of zombies with an interest coverage ratio of less than one has grown by 420%, according to Bloomberg. And their outright number has even exceeded the peak of the last two recessions. … READ MORE >
CHART OF THE DAY: Markets prepare for favorable clean energy policies
Joe Biden’s clean energy plan has recently been a point of focus. And the prospect of a Biden victory in the presidential election has spurred a rise in stocks set to benefit from his proposed $2 trillion package. … READ MORE >
CHART OF THE DAY: Hedge funds are faring well, but there is a range
Hedge funds are faring well after years of lackluster results, but the returns have not been uniformly strong. … READ MORE >
CHART OF THE DAY: Plunging private equity deal flow in Canada
The economic distress from the coronavirus pandemic is hitting the Canadian private equity market hard. The number of deals reached in Canada this year through Oct. 6 fell to 194, which at that pace would represent a 60% decline from 2019. … READ MORE >
SBA announces simplified PPP loan forgiveness
Some businesses that accepted financing under the Paycheck Protection Program now have a streamlined path to receiving the promised forgiveness of those loans, under new guidelines released late Thursday. … READ MORE >
CHART OF THE DAY: Business development companies show continued risk
Business development companies are still lagging the market in a sign of persisting concern over the performance of loans to small and midsize businesses. … READ MORE >