Fourth Quarter Will Be a Borrowers Market

Shlomi Ronen is the managing principal and founder of Dekel Capital.

The fourth quarter will be a borrowers market, thanks to a growing increase of new lending sources. This year, new lenders have routinely entered the market, particularly in the bridge lending space. As a result, lenders are loosening underwriting standards and reducing spreads in order to meet production goals, and this competition has allowed borrowers to dictate terms. This liquidity in the market will fuel activity in the fourth quarter as well as in through 2019.

“This has been slowly evolving. As we have seen more lenders formed and more companies getting into the lending space, it has created so much competition,” Shlomi Ronen, managing principal and founder at Dekel Capital, tells GlobeSt.com. “That has really tipped the scales to the side of the borrowers. I think that we were in some kind of equilibrium in the earlier part of the year, and it feels like we are now starting to see borrowers able to dictate some of the terms because lenders are hungry for deals.”