Private Credit

Silver Creek Private Credit Market Update – Q4 2014

Overview

In late October the European Central Bank (“ECB”) released the results of the Asset Quality Review (“AQR”), a widely anticipated review of the financial health of 130 of Europe’s largest banks. The headline number, as illustrated below, was an aggregate capital shortfall of €25 billion across 25 participant banks as of December 2013.i  Following capital raises, restructurings and other measures in 2014, the number of “failed” banks declined to 8 which represented an aggregate capital shortfall of €6 billion.ii  While the details of the review continue to be digested by the market, its impact to date has been significant as the total amount of balance sheet strengthening from July 2013 to August 2014 was €203 billion.iii

Continue reading (PDF)

© Silver Creek. All rights reserved.