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January 4, 2011
Improved Expectations for Lending and the Economy
PHILADELPHIA (January 4, 2011) —- Overall, lenders are indicating encouraging signs for business and the economy into 2011, according to the results of last quarter’s Phoenix Management “Lending Climate in America” Survey.
Domestic lending expectations signal signs of growth compared to the previous quarter. The overall index for all domestic lending segments increased by eleven percentage points in comparison to last quarter’s survey. Respondents indicated that, on average for all domestic lending categories; forty-seven percent have expectations for increased loan demand (versus 37 percent in the prior quarter). All four lending categories in the survey including; Corporate, Middle Market, Small Business and International, yielded improved expectations compared to the previous quarter
“The fact that 44% of lender’s customers anticipate making an acquisition in the next six months demonstrates a real shift in confidence in the economy,” said Phoenix Senior Managing Director and Shareholder Michael Jacoby. “That’s up almost 20 percentage points over the previous quarter.”
The survey also showed other positive major indicators. The uptick in Senior Debt to EBITDA ratios and senior loan multiples reflect an increase in risk appetite, and nearly double the respondents believe their institution’s senior debt to EBITDA ratio will increase in the next six months. And, lenders expectations for the economy show an improvement in growth expectations for the next six to twelve months compared to the previous survey.
To see the full results of Phoenix’s Lending Climate in America Survey, please visit http://www.phoenixmanagement.com/survey/
For over 25 years, Phoenix has provided smarter, operationally focused solutions for middle market companies in transition. Phoenix Management Services provides turnaround, crisis and interim management, specialized advisory and operational due diligence services for both distressed and growth oriented companies. Phoenix Capital Resources provides seamless investment banking solutions including: M&A advisory, complex restructurings and capital placements.
Visit www.phoenixmanagement.com & www.phoenixcapitalresources.com.
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