Banks and other lenders shared a mostly positive outlook for the asset-based lending (ABL) market in the first quarter, fueled by predictions of a soft landing for the U.S. economy. But they are mindful of looming regulatory changes and continue to monitor portfolios for signs of post-pandemic stress, according to data released by the Secured Finance Network (SFNet).
SFNet surveyed bank and non-bank asset-based lenders on key indicators for its quarterly Asset-Based Lending Index and the SFNet Confidence Index.
“On balance, the ABL industry remains healthy and has a moderately improving outlook even though current economic conditions have limited demand for borrowing,” said SFNet CEO Richard Gumbrecht.
The most positive expectations among lenders centered on portfolio performance and employment. But they indicated softening expectations for new-business demand and client utilisation rates.
