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Corporate and Investment Banking

Loan & Portfolio Management


Loan & Portfolio Management (LPM) combines the management of traditional bank loans with the functions of portfolio management by structuring, executing and managing the transfer of credit risk via derivatives.

http://cib.bnpparibas.com

Focus on major events

In 2006, average margins on outstanding traditional bank loans to companies continued to shrink, leading CIB to:

  • implement processes to tighten discipline at the origination level for this type of loans, which are low profit but important for maintaining a relationship with the client and then proposing higher value-added solutions and cover other needs;
  • optimise the amount of capital allocated to these activities by taking advantage of favourable market conditions (liquidity and margins). In this way LPM has actively continued its loan securitisation programme, executing several transactions for a total notional value of USD 35 billion, including CLO Corporate's largest public transaction (Global Liberté V: USD 12 billion).

 

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