evolved from being a profit-making product to becoming an essential
tool to help companies maintain liquidity, according to interviews
with two prominent players in the asset finance syndication
market.
Hitachi Capital has seen increased activity in the UK market
recently, with much more selling activity because of some companies
divesting particular books from the market. As a result, the
company is “actively exploring” opportunities to buy portfolios
that fit its business model.
Go deeper with GlobalData
On the international front, the Swedish lessor SEB Merchant
Banking, which is active internationally, has also seen the
momentum change in the syndication market. Stefan Jonsson, manager
of the structured asset finance team, said that although he had
seen some requests that his business would not normally see, other
sectors have not been as active as normally expected.
According to Jonsson, SEB too is looking closely at buying
syndication portfolios: “We are looking for decent counterparts
with portfolios of a wide variety of assets, such as IT equipment,
trucks and trailers.”
The company has not yet bought many portfolios, but it is an
area it is looking to expand in.
“Although we are not too active while the markets are in
turmoil, we are capable of doing big deals if something should
occur,” he added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHowever, in this sense SEB is in an unusual position. While, as
Hitachi Capital reports, there has been an increase in desire to
syndicate portfolios, there appears to be a shortage of
lessors willing to buy into syndications.
Perhaps because of the economic downturn, Dilek Mackenzie, head
of syndication at Hitachi Capital Business Finance, said she has
seen many more sellers and fewer buyers in the marketplace than
before: “It is noticeable. Some of the institutions who were active
buyers are going through structural changes, so we cannot trade
with them in the way we used to.”
This is not particularly affecting Hitachi Capital, however, as
the company keeps a close eye on buying “more good business and
good transactions” for its book.
Commenting on why syndication has become a valuable tool in the
current economic climate, Mackenzie said: “Liquidity management is
a major concern for all financial institutions today. Having the
ability to syndicate from your book – selling your assets in the
market – gives you a great opportunity to create liquidity as you
need it.”
When Hitachi Capital syndicates “the risk is transferred onto
the buyer’s books, while we retain the day-to-day client
management”, said Mackenzie. “The end-user only becomes aware of
the syndication if they default, when our partner would need to
disclose themselves.”
Jason T Hesse
