Intelligence

2021 Virtual Loan Participations Forum: Key Takeaways

LoanStreet operates under a single, unified goal: continue to deliver the best possible loan trading and reporting experience for our clients through best-in-class participations solutions.

We are fortunate to have a community of experts across the Credit Union and Banking spaces, from regulatory experts to economists, who are willing to share their insights with us to help us continue to fulfill this goal. We recently held our 2nd Annual Virtual Forum to hear from these experts and share some updates on the loan participations market as a whole, as well as how our platform has grown in the last year to better suit their needs. Today, we're excited to share some of the key takeaways of those discussions with you.

 

Day 1: Comprehensive Data Solutions Are Requisite for Contemporary Loan Trading

Represented: Tremont Credit Union, Seasons Federal Credit Union, SkyOne Federal Credit Union, Alliant Credit Union, Utilities Employees Credit Union

Whether entering the participations market or looking to enhance their results after seeing previous success with participations, access to high-level consolidated reporting and data analytics is a necessity for modern loan trading programs. We asked our clients about the use of analytics in their participations programs, and the answer was clear: gone are the days of slow back-office calculations making their way up the pipeline. Instead, recurring, automated data sharing allows organizations to quickly assess risk, gauge the potential of the available market, and adapt their strategy in real time.

 

Day 2: Adaptability is Key to Navigating Evolving Regulatory & Economic Trends for CU's

Represented: Law Offices of Michael S. Edwards, Mark Treichel LLC, Economist/Former Vice Chairman - Credit Suisse

In our discussions with regulatory and economic experts, we gained valuable insights into what the future shows for the greater loan participations marketplace. It is clear that we're seeing consistent hits to the economy at large, with falling interest rates and disrupted supply chains skewing many of our previous expectations. Now, with the addition of new, more stringent regulations on Credit Union activities with regards to loan participations, there is more need than ever for these institutions to be adaptable in more ways than one.

Despite these trends, the market continues to grow, and with it, the need for scalable trading as well as top-notch reporting and compliance tools. Organizations new to participations and veterans in the space alike face these fresh challenges, which creates opportunities for those who can help them confidently and efficiently navigate this evolving ecosystem.

 

Day 3: Scaling Loan Participations Requires a Unified Approach

Represented: LoanStreet’s Trading Team, Metro Credit Union, SECU Credit Union

As we consistently heard throughout this session, taking a single-stream approach to a loan participations model removes a number of factors that have historically prevented the ability to scale. All too often, the scaling of a participations model requires more administrative work and organizational structures than possible with a limited back-office team. Similarly, the ability for institutions to scale their participations is frequently contingent on their capacity to diversify assets, a significant undertaking for those who are first entering the space and would need to locate these deals.

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Our team at LoanStreet are constantly working to improve the ability for institutions of all sizes to develop or scale their loan participations program. Stay tuned as we continue to unveil new solutions to better suit the needs of our individual clients as well as the participations market as a whole.

If you are interested in the full recordings of our Virtual Forum panels, or wish to learn more about how we can help your institution please don’t hesitate to contact us.

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