Press Release
TZK Capital Launches Broker Service for the Sale of Bank Loan Participations and Whole Loans in the Commercial Loan Secondary Market
Coconut Creek, FL, November 13, 2007 TZK Capital, a specialist in participations and loan portfolio sales, today announces the launch of its broker services in the commercial loan secondary market. By matching buyers and sellers, the company facilitates the trading of bank loan participations and whole loans between financial institutions.
Darin Batchelder, the company's President and founder, started the company in an effort to make loan trading between financial institutions more efficient. Mr. Batchelder was formerly with ABN AMRO's Mortgage Capital Markets Group where he traded approximately $4 billion in loans. The loan sale continues to be a relationship-driven business. The first step in making the process more efficient is quickly pairing buyers and sellers of loans, states Mr. Batchelder.
TZK Capital has relationships with a broad, national network of institutional buyers, consisting mainly of banks, insurance companies and REITs. These financial institutions are each looking for high-quality performing loans to purchase either as participations or as whole loans. The art of the loan sale continues. Each financial institution has different requirements when looking at loan purchases including; geography, product type, credit and yield requirements. Understanding these requirements are key to matching the right buyer with the right seller, states Mr. Batchelder.
Financial institutions sell participations and whole loans in order to:
- manage loans to one borrower limits
- increase liquidity
- book gains
- maintain maximum allocations to a particular asset type or geography
- find new buyers as the securitization market slows
- perform loan portfolio clean-up after an acquisition of another financial institution
By listening to and understanding its customers' requirements, the company is uniquely positioned to help banks and other financial institutions find the right institution to partner with as each looks to either buy or sell loans.
