Revolving lines of credit on pace to drop in 2012
Tysons Corner office managing partner, and Lending and Structured Finance practice group leader Richard Pollak was quoted in a November 28 CFO article about revolving lines of credit being on pace to drop in 2012, as macroeconomic and regulatory concerns have dampened the market for new issuance and companies have found other sources of funding.
As of November 14, the dollar volume of corporate credit lines issued in the loan market stood at $787 billion, while total issuance for 2011 was $1.28 trillion, according to Thomson Reuters. “The conventional wisdom is that everyone was waiting to see what happened with the presidential election,” said Pollak. With the election over, volume has picked up some, he says, but now the conventional thinking is that the fiscal cliff could be keeping down activity.