Wholesale lending, a new frontier of income investing

Описание: Non-banks are turning the retail lending space on its head, and it’s not just consumers who are benefiting from the disruption. For REALM Investment House, this burgeoning market represents a fertile investment opportunity.

You might’ve heard of Athena and Nano. These non-banks don't have normal retail depositors, so they depend on wholesale funding. And it’s here, in the wholesale funding space, where REALM Investment House has found strong relative value.

“Wholesale banking offers really strong security, you get really strong covenants, and the tenor is noticeably different – typically 12 months versus a private debt or a syndicated loan which could be five or ten years,” says portfolio manager Rob Camilleri.
Realm Investment House provides this wholesale funding alongside major banks or primary lenders.

The result is a return of 4.75% per annum over cash, making for a strategic income allocation that looks compelling in the low rate world we live in.

In this wire, you’ll hear about how wholesale funding can piggyback the stellar growth of non-banks, and how fixed income investors can take advantage of it.

Access an edited transcript here: https://www.livewiremarkets.com/wires...