Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Thematic (Sector/Industry)

Hungary Banks / Thematic (Sector/Industry)

* Pandemic Stay At Home Orders To Be Extended:  Excluding the Northeast Corridor and West Coast, major American cities would appear to be at the tipping point of major corona virus outbreaks. Virginia and Maryland have ordered their state lockdowns to be extended through June 10th (12 weeks). The City of Toronto also announced the cancellation of city programs. Several other factors too would suggest that the Trump administration’s stay at home order - now through April 30th – will again be extended;* SME Risk Increasing With Each Passing Day: The longer the stay at home order for the Corona Crisis lasts, the longer small-to-medium sized entities (SMEs) [the driver of US economic growth] will remain impaired.  As it stands, SMEs contribute about 1/3 to US GDP, employ about 50% of the private workforce, and have contributed 2/3 of the net employment gains since 2011. The Small Business Administration (SBA) has warned of a 28 day process, which is an eternity (18 days into the stay at home order) given the average 27 days of SME cash reserves;  and* Liquidity Risks Elsewhere Are Increasing: The ongoing market liquidity crisis (hedge funds/sovereign wealth/CLOs/REITs/HNW/State of Illinois, et al) shows no signs of abating.

* Pandemic Stay At Home Orders To Be Extended:  Excluding the Northeast Corridor and West Coast, major American cities would appear to be at the tipping point of major corona virus outbreaks. Virginia and Maryland have ordered their state lockdowns to be extended through June 10th (12 weeks). The City of Toronto also announced the cancellation of city programs. Several other factors too would suggest that the Trump administration’s stay at home order - now through April 30th – will again be extended;* SME Risk Increasing With Each Passing Day: The longer the stay at home order for the Corona Crisis lasts, the longer small-to-medium sized entities (SMEs) [the driver of US economic growth] will remain impaired.  As it stands, SMEs contribute about 1/3 to US GDP, employ about 50% of the private workforce, and have contributed 2/3 of the net employment gains since 2011. The Small Business Administration (SBA) has warned of a 28 day process, which is an eternity (18 days into the stay at home order) given the average 27 days of SME cash reserves;  and* Liquidity Risks Elsewhere Are Increasing: The ongoing market liquidity crisis (hedge funds/sovereign wealth/CLOs/REITs/HNW/State of Illinois, et al) shows no signs of abating.  

Choke Hold On American SMEs and Ongoing Liquidity Crisis