New York—cross border banking and finance guide
Produced in partnership with Reed Smith
New York—cross border banking and finance guide

The following Banking & Finance practice note produced in partnership with Reed Smith provides comprehensive and up to date legal information covering:

  • New York—cross border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

New York—cross border banking and finance guide

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments.

The US corporate loan market prior to the arrival of COVID-19 in March 2020 was very strong and highly liquid with fairly stable pricing. Since the arrival of COVID-19, new originations in the loan market have softened and pricing volatility has increased, but secondary trading volumes have remained strong. Although it does not appear as if new originations or pricing will return quickly to pre-COVID-19 levels, the active trading in the secondary market evidences that there is still investor demand for loans (even if the prices are likely to remain lower in the near term).

In the wake of COVID-19 and the broad economic uncertainty and interruption caused as a result, the federal government has stepped in to help stabilize the economy. The government through the broad relief packages have increased the involvement of the Treasury and Federal Reserve both in regulating monetary policy and as a lender providing liquidity directly to banks, key industries and the main street. The CARES Act relief bill and related stimulus packages mark an incredible expansion of the Federal Reserve’s purview which doesn’t usually involve aid to companies and smaller-scale governments. The terms of the loans and relief

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