Analysis: Today’s Hot Banking Business Is Lending to Lenders​​​

Once again, banks are struggling to expand their loan books — but they have an ace up their sleeve: lending to nonbank lenders, according to an analysis in The Wall Street Journal. Across several large, global, national and regional banks that have reported earnings so far, a common pattern is tepid loan growth. The year-over-year average loan growth at eight commercial banks — ranging in size from JPMorgan Chase to First Horizon — rounds to zero. Many are still shrinking their commercial real estate loan books. One area that is growing rapidly is lending to nonbanks, often through banks’ trading units. These can be loans to hedge funds, but also to credit funds or financial companies that are themselves making loans to businesses or consumers. The banks lend to the lenders, and sometimes also help them then sell those loans to the market in the form of a securitization. At Bank of America, average loans in the first quarter were up 4% from a year earlier. Lending in its consumer and global banking units grew just 1%. But it reported a 19% jump in lending within its global markets business. Bank of America’s finance chief, Alastair Borthwick, on Tuesday described the growth in global markets as “very diversified,” and “across things like asset-backed and mortgage warehouse, and credit financing and subscription.” This is also a driver of higher revenue at banks’ trading desks, in which revenue from this lending is often reported. Read more.​​​​​​

Home Builders Are Gloomy over Trump’s Tariffs and Economic Uncertainty​​​

Home builders are feeling the sting from President Donald Trump’s trade war and growing economic uncertainty, adding to the challenge of building enough homes to fix America’s shortage, the Washington Post reported. Builder sentiment in the market for new homes has been slumping for months and stayed low in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index released Wednesday. When asked about tariffs’ effect on their businesses, 60 percent of builders said their suppliers have already increased, or announced increases, on goods prices because of tariffs. Builders are estimating a typical cost effect of nearly $11,000 per home, given how many products from abroad will be hit by the trade war. The gloominess could make it harder for builders to ramp up construction, which many economists say is essential to tame housing costs. Experts say the country is short somewhere between 1.5 million and 4 million homes, and prices for renters and buyers have stayed high largely because there aren’t enough homes to go around. The longer it takes to fill that gap, the longer people will see housing costs take up large chunks of their budgets. Jim Tobin, president and chief executive of NAHB, said “builders are taking a little bit of a pause” to better understand how Trump’s policies — on trade, immigration and more — will shape the broader economy. ​​​​Read more.​​​​​​

Subchapter V Experiences to Share? ABI Wants to Hear from You!

ABI is continuing its study of Subchapter V, and it needs your help! We are particularly interested in learning more about the real-world impact of Subchapter V. So our question is, do you have a story about a distressed business or creditor who has used or benefited from the subchapter? If so, could that case still happen under the lower debt cap for Subchapter V debtors? Any and all responses are welcome. Submit your story at https://abi.org/subvstories.
 

Analysis: What the Weak Dollar Means for the Global Economy​​​

The unexpected weakening of the U.S. dollar is suddenly becoming the rest of the world’s problem, according to a Wall Street Journal analysis. For foreign sellers of all manner of goods, including cars, cognac and Scottish tweed, the dollar’s steep slide is a double whammy, compounding losses caused by President Trump’s import levies. For central banks around the world, the rapid strengthening of their own currencies heaps pressure to cut interest rates more aggressively. The U.S. currency resumed its rapid weakening Wednesday, hitting fresh lows against the euro, the Japanese yen and the Swiss franc. The dollar decline has been historic, with the ICE U.S. Dollar Index, a measure of the greenback against a basket of currencies, slipping 8% this year, the worst start to a year in the index’s four-decade trading history. Because of its role as the primary currency used for global trade and finance, swings in the dollar have significant global consequences. “For exporters, you’re not getting the currency eroding some of the tariff impact for the end U.S. consumer,” said Derek Halpenny, the London-based head of global markets research for the Japanese bank MUFG. “It has a bigger negative impact for sure.” A weak dollar makes the profits that foreign companies earn from their U.S. divisions worth less when translated back into euros or yen. It also makes the goods they produce more expensive for American consumers. Read more.​​​​​​

U.S. Jobless Benefit Claims Fall Last Week as Labor Market Remains Strong Despite Recession Fears​​​

U.S. applications for jobless benefits fell again last week as the labor market continues to hold up despite fears of a tariff-induced recession, the Associated Press reported. Jobless claim applications fell by 9,000 to 215,000 for the week ending April 12, the Labor Department said Thursday. That’s well below the 225,000 new applications analysts forecast. Weekly applications for jobless benefits are considered a proxy for layoffs, and have mostly stayed between 200,000 and 250,000 for the past few years. The four-week average of applications, which can soften some of the week-to-week swings, fell by 2,500 to 220,750. Even though President Donald Trump has paused or pulled back on many of his tariff threats, concerns remain about a global economic slowdown that could upend what has been an historically resilient labor market. Like his pledge to institute tariffs, Trump’s promise to drastically downsize the federal government workforce occupied much of the early weeks of his presidency and is still in motion. It’s not clear when the job cuts ordered by the Department of Government Efficiency — or “DOGE,” spearheaded by Elon Musk — will surface in the weekly layoffs data. Read more.​​​​​​

Unlock Bankruptcy Law Essentials from Top Industry Professionals with Restructuring Masterclass Program​​​

Restructuring Masterclass is an online, on-demand series of classes specifically designed to cover all the bankruptcy essentials. This program provides a foundation in bankruptcy law for both lawyers and business professionals alike, and sessions are taught by an outstanding faculty of experts who present practice tips and the basic concepts that every professional dealing with insolvency needs to know. Learning the fundamentals of bankruptcy law is an essential practice component for a variety of professions. Subscribe today at restructuringmasterclass.com to explore more than 40 expertly crafted courses, with new sessions being added monthly.​​​​​​

ASM Session Spotlight: Simply the Vest: A Judicial Roundtable Discussion of Vesting and Why It Matters in Commercial and Consumer Reorganizations​​​

Next week’s Annual Spring Meeting kicks off with “Simply the Vest: A Judicial Roundtable Discussion of Vesting and Why it Matters in Commercial and Consumer Reorganizations.” Join this powerhouse panel for a lively discussion regarding the true meaning of “vesting” and the implications and issues it brings to both consumer and commercial cases. The panelists will debate the various interpretations of vesting and dive into a theoretical discussion of vesting across the Bankruptcy Code chapters. Through the use of hypotheticals, the moderators will guide the panel’s discussion through areas of vesting that you might not have ever considered important, but you should. You can’t afford to miss this discussion. Register today.​​​​​​

Applications Being Accepted Through June 2 for NCBJ/ABI Trial Skills Workshop in Chicago​​​

NCBJ and ABI will again offer an intensive, full-day workshop designed for bankruptcy practitioners to build trial skills and increase confidence for better outcomes for clients. This learn-by-doing program on Sept. 17 in Chicago is limited to 20 attorneys with 12 or fewer years of practice. Interact with 15 sitting federal judges over breakfast and lunch (included) at the U.S. District Courthouse in Chicago, and network with other participating bankruptcy attorneys. Applications must be received by June 2! Click here for more information and to submit an application. Apply today.​​​​​​

Third Circuit Invites Public Comments by May 15 for Reappointment of Bankruptcy Judge Carlota M. Böhm​​​

The current term of office of the Hon. Carlota M. Böhm, U.S. Bankruptcy Judge for the Western District of Pennsylvania in Pittsburgh, is due to expire on Nov. 27, 2025. The U.S. Court of Appeals for the Third Circuit is considering the reappointment of Judge Böhm to a new 14-year term of office. Members of the bar and the public are invited to submit comments for consideration by the court of appeals regarding the reappointment of Judge Böhm. All comments will be kept confidential and should be directed to one of the following addresses: by email at Bohm_Reappointment@ca3.uscourts.gov or by mail to Margaret A. Wiegand, Circuit Executive, 22409 U.S. Courthouse, 601 Market Street, Philadelphia, PA 19106. Comments must be received no later than May 15, 2025.​​​​​​

Application and Nomination Period for ABI’s 2025 “40 Under 40” Open Through June 30​​​

The ABI "40 Under 40" annual program continues to highlight the best up-and-comers in the industry. If you are, or know of, a dynamic insolvency professional who is committed to growth and excellence both professionally and in your community, this is one opportunity not to be missed! Applications are due June 30. Click here for more information and to submit a nomination or application. 

Access All Current ABI Titles Through ABI’s New Digital Book Subscription!​​​

One of the best collections of bankruptcy books is now available as an annual digital subscription! ABI’s bankruptcy library opens the door to a constantly evolving area of the law, and our books are continually being updated by top industry professionals. Auto-renewing annual subscriptions guarantee immediate access to this invaluable resource, which is comprised of fully searchable content that’s always available on any digital device. Convenient pricing plans for individual and institutional subscribers offer immediate and unlimited access to our entire digital library of books — nearly 100 treatises! Plus, you get advanced access to new and revised books as soon as they are published — all included in your annual subscription. Learn more!

Have an Idea for a Topic for an ABI Conference Session? Submit Your Proposal via ABI’s “Call for Abstracts” Page!​​​

ABI has launched an online portal for professionals to submit proposals for educational sessions at future ABI conferences. Submitters can describe their proposed topic, outline the session’s focus and learning goals, suggest speakers, and provide contact information via the portal’s detailed form. The portal can be accessed here.

All submissions will be reviewed by an internal Education Committee, which will contact the submitter to ask questions as needed and to discuss the status of the proposal. Submissions will be reviewed on a rolling basis.

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