In the current macroeconomic environment, one of the challenges facing many financial institutions is finding ways to optimize their loan portfolios. Whether looking to find potential liquidity or acquire loan assets, ongoing economic headwinds may hinder the ability of some banks and credit unions to effectively manage balance sheet risk and return.

A solution for some may come in the form of digital marketplaces that allow members to place and source loans in the secondary markets, as well as find new credit opportunities and capital partners. Such is the goal of PNC Asset Exchange, a new online loan marketplace and business technology platform from the PNC Capital Markets’ FIG Advisory group.

The platform, which is powered by Community Capital Technology, Inc., provides financial institution members with the opportunity to evaluate, buy, sell, and participate in all types of loans. Loan buyers seeking to diversify asset classes or enhance yield can view potential deals that fit within their stated parameters. Sellers looking to manage asset concentrations and liquidity can submit loans or loan portfolios for anonymous posting and work directly with prospective buyers to close the deal.

“One of the great things about PNC Asset Exchange is the efficiency it offers in terms of quickly matching up buyers and sellers. It allows participants to enter their specific loan stipulations and automatically receive recommendations that match up with relevant transactions,” said Brian DeRespiris, Head of Fixed Income Sales and FIG Advisory. “It also offers a broad scope of loan collateral and allows members to transact in a host of asset classes and types of transactions, including forward flow and nonfunded loans.”

He added that an important aspect of PNC Asset Exchange’s value is the advisory capacity it affords clients. “The goal with PNC Asset Exchange is not just to provide a marketplace and hope members can find what they need,” said DeRespiris. “Our FIG Advisory team brings consultative expertise to provide customized advice to help members be successful.”

According to Jack Payne, managing director in PNC Capital Markets, another part of the value that PNC Asset Exchange brings is the access it affords private capital firms, particularly during challenging economic circumstances. “There are private capital entities looking to put capital to work to provide credit for institutions that need it,” Payne said. “PNC Asset Exchange can serve as sort of an extension of the banking universe, allowing private capital to work together with banks to make loans in many different ways.”

This kind of versatility is one of the advantages of this digital asset exchange, Payne noted, adding that it has valuable utility regardless of the macroeconomic environment. “Right now, a lot of financial institutions might be interested in using this type of platform because they are looking for liquidity. But PNC Asset Exchange can be equally useful in other economic circumstances, when banks are full of capital and looking to lend. Many different players can use the platform for many different reasons.”

 “We know that a lot of financial institutions are struggling with managing their balance sheets, and it may not be clear what the right next steps should be,” said Robert Pachence, Head of FIG Advisory at PNC Capital Markets. “Our goal with PNC Asset Exchange is to provide a differentiated, curated experience tailored to the needs of each member and their particular evolving strategic needs.”

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