ABL group?
What is the Asset Backed Lending group of banks? Some are in the capital markets divisions? I applied to a position in this group lol and no clue what they do. I have credit experience.
ABL is all about lending based on certain B/s assets. Mostly off of A/R and Inventory and the risk level/likelihood of those assets being liquidated.
It is different from ABF too, which is the securitization of loans.
Thanks! Any idea on exit opps? Can you get into corporate banking from this?
No problem! And I am not sure honestly on exit ops
I've seen this group in the Capital Markets/IBD division of banks, why? It kind of feels like commercial banking.
Yea I’m not sure either. I understand why ABF is but ABL seems much more commercial than IB.
To answer the question on capital markets (this may not totally answer it, but it at least give some rationale behind it) I’ll explain the features that ABL has at my BB, which might help explain why it sits within capital/credit markets.
1. Transaction sizes are usually larger than in vanilla CB
2. Riskier credits are allowed because of how the product is structured
3. Heavy interaction with syndications, sponsors and to a lesser extent the LevFin group
4. The group sometimes does TLB transactions which is not super typical (at least at my BB) for commercial banking
5. Lastly the whole purpose of the group is to do transactions that fill in or help out with the capital structure when the cash flows simply don’t cut it. Because of this many, many, of the deals are with sponsor backed companies, which generally just means that the capital structure is more complicated.
Thank you! Also, is that your actual name lol?
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