When espousing the many capabilities and applications we see for the WAIN Street Business Credit Health Index there is always a concern about coming off as too ambitious or “pie in the sky” which can hurt credibility, especially in an industry that is practical and risk conscious. However, we keep finding hints, nearly every day, …
Mortgage backed securities (MBS), credit default swaps (CDS), and collateralized debt obligations (CDO) all sound like dirty words these days. It’s tough to argue against these sentiments given their contribution to the financial crisis. While obviously a MBS or CDS couldn’t single handedly collapse the entire system, these innovations that bundled and redirected risks provided …
By providing partial guarantees of billions of dollars in loans to mid-market and small businesses, the SBA is navigating treacherous waters. While fulfilling their mission to support small business growth, there’s always a danger that the SBA safety net allows lenders to excessively gamble on riskier companies exposing themselves to unsafe losses. Recent “Liar Loans” that …
From Businessweek: Make the Next Bailout Serve Small Business It’s an oldie, but still very relevant. Why has there been such a huge failure by the architects of the these bailouts at making them work for small and medium businesses? Mr. Shane talks about a number of problems with trying to target the bail out billions …
From Bloomberg Businessweek: What We Don’t Know About Small Business Lending The 2008 crisis has shed some light on many problems with our financial system that have been either hidden or ignored. One of those problems is that we simply don’t have enough information about mid-market and small businesses.
