Though risk appetites for larger retail department stores have begun to increase somewhat in the past three to six months, credit insurers still remain very conservative on those with a Moody's rating of BB or less
South Plainfield, NJ (Vocus) March 24, 2010
Marc Wagman, Managing Director of Smyth Trade Credit LLC, a leader in the credit risk protection business, and one of the Smyth Family of Companies, was a featured panelist at JPMorgan's annual High Yield and Leveraged Finance Conference on March 2, 2010. The discussion focused on credit challenges faced by suppliers to the retail channel in this difficult economic environment.
“Though risk appetites for larger retail department stores have begun to increase somewhat in the past three to six months, credit insurers still remain very conservative on those with a Moody's rating of BB or less,” said Marc Wagman of Smyth. During the panel he added that, "For suppliers looking for protection on more challenging retail names, the only place to find non-cancellable coverage is in the capital markets. And for those companies who import goods and as such have purchase order-to-shipment cycles which can be as long as 6 months, the non-cancellability of coverage can be vital. Without that credit support, it can make make inventory planning very problematic. Further, with the explosive growth in high yield debt coming due in the next two to three years, creditors need to act without delay to protect their interests. Twelve to eighteen months from now, pricing for coverage could easily double from where it is now."
The conference and panel discussion were attended primarily by investors holding high yield bonds and leveraged loans as well as key suppliers to those issuing companies.
About The Smyth Family of Companies – since 1906
Smyth Trade Credit LLC is one of the Smyth Family of Companies, and is a leading provider of risk mitigation services, including trade credit insurance, accounts receivable puts as well as esoteric products such as weather and energy risk protection.
Smyth is a leading provider of technology-driven, Customer Financial Management services, including credit, accounts receivable, collection, deduction, and profit recovery solutions, integrated through best-in-class Rationali, and Carixa SaaS systems engineered for mid-market and large enterprises. Smyth manages the entire credit-to-cash continuum, integrating services with powerful, next-generation Internet systems that streamline operations, slash costs, and increase profits. SAS 70 Certified. http://www.smythsolutions.com