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In the Marketplace
In a recent Financial Services Special Report by Fitch Ratings of New York, 'U.S. Finance & Leasing 2007 Outlook ' Tougher Sledding,' the rating company concluded that the outlook for 2007 is 'broadly Stable, however, stress points are beginning to emerge, most noticeably in the residential mortgage arena.' Although the scope of companies covered by the report is quite diverse, a few common themes were present. First, the credit cycle is becoming less benign, which could cause a rise in delinquencies and losses. This is already showing up in the subprime residential mortgage sector. Second, the report notes, capital management is becoming more aggressive, as leverage, on any measure, is increasing. Although issuers are managing capital more aggressively, the analysts did not see immediate rating repercussions as they felt issuers are more sophisticated in capital planning and are better able to tie together capital and credit risk. Third, the continued flat to inverted yield curve represents a major challenge to all lenders, which Fitch does not anticipate to normalize in the short-run, leaving finance and leasing companies to wrestle with this issue well into 2007.
Fitch further projects some level of mergers, acquisitions, and divestitures to occur, but with a greater emphasis on portfolio purchases, both foreign and domestic.
An emerging trend for finance and leasing companies is to enhance 'asset management' capabilities. 'This tendency became evident in companies that possess a variety of origination channels, but not necessarily the risk appetite or capital capacity for holding certain assets on-balance sheet. This has been made possible by advancements in capital markets, such as CDOs, as well as strong supply of liquidity, willing to invest in such assets. Nonetheless, Fitch will be monitoring the development of asset management businesses, particularly if liquidity becomes less available.' Ultimately, however, Fitch expects that commercial lenders and leasing companies will perform reasonably well in terms of credit quality, even with a modest weakening in the macroeconomy.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?