Pegasus Capital

When it comes to the renewal of banking facilities, especially for corporates, the old adage that people move house more often than they move bank accounts certainly holds true.

Refinancing or renewal risk can be particularly difficult, especially if liquidity is a scarce commodity, the cost of funds may have increased markedly or when interest rates are artificially low.

We can help navigate the entire process reviewing financial models, the loan and swaps documentation and advising on the most appropriate hedging strategies.

A View From The Bridge - May 2020 (2)

The risks of a deflationary outcome remain very elevated. Our understanding of likely household responses is becoming more informed, particularly with regard to genuine uncertainty, precautionary savings balances being built (where possible) and the likely consolidation of credit related debt. Turning the tide on the risk of viral infection and saving lives is the driving policy of government, but by definition this just pushes another rising tide of shrinking demand onto the economy.

PegasusCapital - 07/05/2020