Category: Finance Companies

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CFPB Warns Auto Finance Companies About Inadvertent Repossessions

CFPB Warns Auto Finance Companies About Inadvertent Repossessions

On February 28, the Shopper Money Defense Bureau (CFPB or Bureau) issued a bulletin and accompanying push release, highlighting an issue that the agency has prepared about regularly more than the previous numerous several years: inadvertent repossessions. For the most part, the bulletin reminds the industry of assistance formerly issued by the CFPB in numerous editions of Supervisory Highlights and a 2020 consent get, but it also stands as a obvious reminder that inadvertent repossessions continue being 1 of the Bureau’s maximum priorities in vehicle finance.

Inadvertent repossessions are all those that manifest in mistake — when a shopper has produced a payment or guarantee enough to end the repossession, but it happens no matter. Several faults can cause this to happen, some of which are highlighted in the bulletin:

  • Applying a payment to the erroneous account
  • Failure to process an extension/deferment
  • Failure to terminate a repossession purchase (or all orders, if the account is positioned with far more than 1 repossession vendor)
  • Vendor failures (recovering the auto, even even though the order had been put on keep or canceled)
  • Failing to terminate lively repossession orders when a consumer documents for bankruptcy
  • Making use of payments to the account in an buy different from that represented in customer communications (i.e., spending costs to start with, which may well protect against the account from grow to be adequately paid down to prevent the repossession)

The bulletin also notes situations in supervisory tests in which car finance organizations produced representations to buyers about what actions would be enough to steer clear of a repossession, but all those statements were being inaccurate, leading to repossessions even when consumers performed the actions.

In trying to keep with the Bureau’s new concentration on costs, the bulletin also asserts that some repossessions were induced by vehicle finance businesses charging “illegal fees” to individuals, but the “fees” referred to were being really pressure-placed insurance plan premiums. The Bureau more notes that some car finance firms improperly charged insurance premiums just after repossessions, and (returning to an problem that the Bureau very first lifted in a 2016 model of Supervisory Highlights) improperly permitted repossession brokers to cost fees for the retrieval of individual assets from repossessed automobiles.

Getting recapped its former guidance on the concern of inadvertent repossession, the Bureau gives a checklist of suggested compliance steps with regards to the difficulty. These methods include things like common measures like procedures, techniques, evaluate of purchaser communications and payment application processes, checking of repossessions and issues, logging and root lead to examination of inadvertent repossessions, and seller checking of repossession agents. However, it also notes a person point not formerly highlighted in Supervisory Highlights: acquiring a course of action to “reimburse customers for the direct and indirect expenses incurred as a final result of illegal repossessions when ideal.” This thought of customer restitution was present in the CFPB’s 2020 consent order on this challenge, but it’s the facet of the Bureau’s new advice that is in all probability least prevalent in the field right now, and so it merits particular focus.

For the most component, the bulletin summarizes present steerage as earlier observed from the Bureau, and it confirms the sort of compliance methods adopted by numerous auto finance businesses over the previous a number of many years. But the release of the bulletin, and the now-normal strongly worded press launch evaluating inadvertent repossessions to owning a auto “stolen” and asserting that “[a]uto mortgage servicers need to make sure that each individual repossession is lawful,” should serve as a reminder that the subject matter of inadvertent repossessions will continue being an region of intensive scrutiny by the CFPB.

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Horizon Technology Finance Announces Fourth Quarter and Full Year 2021 Financial Results

Horizon Technology Finance Announces Fourth Quarter and Full Year 2021 Financial Results

FARMINGTON, Conn., March 1, 2022 /PRNewswire/ — Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN”, “Horizon” or the “Company”), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced its financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Highlights

  • Net investment income (“NII”) of $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share for the prior-year period
  • Total investment portfolio of $458.1 million as of December 31, 2021
  • Net asset value of $245.3 million, or $11.56 per share, as of December 31, 2021
  • Annualized portfolio yield on debt investments of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the quarter
  • HRZN funded 17 loans totaling $79.9 million
  • HRZN’s investment adviser, Horizon Technology Finance Management LLC (“HTFM”), originated $118.2 million through its lending platform (“Horizon Platform”), inclusive of the HRZN loans
  • Raised total net proceeds of approximately $12.8 million with “at-the-market” (“ATM”) offering program
  • Experienced liquidity events from seven portfolio companies
  • Cash of $45.9 million and credit facility capacity of $92.8 million as of December 31, 2021
  • Held portfolio of warrant and equity positions in 76 companies as of December 31, 2021
  • Undistributed spillover income of $0.51 per share as of December 31, 2021
  • Subsequent to quarter end, declared distributions of $0.10 per share payable in April, May and June 2022

Full Year 2021 Highlights

  • Net investment income of $28.2 million, or $1.41 per share for 2021, compared to $20.7 million, or $1.18 per share, for the prior year
  • Achieved portfolio yield on debt investments of 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for 2021
  • HRZN funded 49 loans totaling $297.1 million; experienced liquidity events from 20 portfolio companies

“The fourth quarter capped off a landmark year for Horizon and the Horizon Platform, including a record investment portfolio at year-end of over $450 million, and we are proud of our entire team’s efforts,” said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon.  “We generated NII of $0.39 per share, above our distribution level, while we continued growing our portfolio.  Once again, we successfully harnessed the increasing power of the ‘Horizon’ brand to drive strong loan originations in the quarter, while maintaining an impressive committed backlog and pipeline of venture debt opportunities.  In addition, HTFM’s predictive pricing strategy continued to prosper, as we completed seven portfolio exits, once again leading to a debt portfolio yield of over 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, among the top of the industry.”

“Along with HRZN’s excellent growth, we finished the year with nearly 98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its portfolio 3-rated or better,” continued Mr. Pomeroy.  “We also recently further strengthened HRZN’s balance sheet and expanded its lending capacity, which should enable us to further grow the portfolio in 2022.  With demand for venture debt remaining at near-peak levels, and with an extensive committed backlog and pipeline, we believe HRZN is well situated in 2022 to continue to grow its portfolio and deliver compelling returns to its shareholders.”

Fourth Quarter 2021 Operating Results

Total investment income for the quarter ended December 31, 2021 grew 68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $16.9 million, compared to $10.1 million for the quarter ended December 31, 2020, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio, as well as higher fee income.

The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended December 31, 2021 and 2020 was 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 13.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.  The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.

Total expenses for the quarter ended December 31, 2021 were $8.7 million, compared to $5.9 million for the quarter ended December 31, 2020.  The increase was primarily due to a $0.9 million increase in interest expense, a $0.4 million increase in the base management fee and a $1.0 million increase in the performance-based incentive fee.

Net investment income for the quarter ended December 31, 2021 was $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net realized loss on investments was $0.9 million, or $0.04 per share, compared to net realized loss on investments of $18.6 million, or $0.99 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net unrealized depreciation on investments was $4.9 million, or $0.24 per share, compared to net unrealized appreciation on investments of $17.1 million, or $0.91 per share, for the prior-year period.

Full Year 2021 Operating Results

Total investment income for the year ended December 31, 2021 was $60.0 million, an increase of 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to $46.0 million for the year ended December 31, 2020.

Horizon’s dollar-weighted annualized yield on average debt investments for the year ended December 31, 2021 and 2020 was 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 14.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.

For the full year ended December 31, 2021, net investment income was $28.2 million, or $1.41 per share, compared to net investment income of $20.7 million, or $1.18 per share, in the prior year.

For the full year ended December 31, 2021, net realized loss on investments was $3.2 million, or $0.16 per share, compared to net realized loss on investments of $14.7 million, or $0.84 per share, for the full year ended December 31, 2020.

For the full year ended December 31, 2021, net unrealized appreciation on investments was $3.2 million, or $0.16 per share, compared to net unrealized appreciation on investments of $0.3 million, or $0.02 per share, for the full year ended December 31, 2020.

Portfolio Summary and Investment Activity

As of December 31, 2021, the Company’s debt portfolio consisted of 45 secured loans with an aggregate fair value of $437.3 million. In addition, the Company’s total warrant, equity and other investments in 78 portfolio companies had an aggregate fair value of $20.8 million.  Total portfolio investment activity for the three months and full year ended December 31, 2021 and 2020 was as follows:

($ in thousands)

For the Three Months Ended 
December 31,

For the Full Year Ended
December 31,

2021

2020

2021

2020

Beginning portfolio

$              452,346

$              311,750

$        352,545

$        319,551





New debt investments

88,693

76,913

344,445

198,561





Principal payments received on investments

(2,171)

(4,485)

(13,474)

(24,829)





Early pay-offs

(66,579)

(30,644)

(174,536)

(121,429)





Accretion of debt investment fees

1,370

815

4,556

3,895





New debt investment fees

(930)

(938)

(3,261)

(2,353)





Warrants received in settlement of fee income

—

—

—

978





Proceeds from sale of investments

(9,169)

(134)

(52,954)

(8,335)





Dividend income from controlled affiliate investment

—

—

—

118





Net realized loss on investments

(568)

(17,672)

(2,451)

(13,727)





Net unrealized (depreciation) appreciation on investments

(4,917)

17,139

3,205

313





Other

—

(199)

—

(198)





Ending portfolio

$              458,075

$              352,545

$       458,075

$       352,545

Portfolio Asset Quality

The following table shows the classification of Horizon’s loan portfolio at fair value by internal credit rating as of December 31, 2021, September 30, 2021 and December 31, 2020:

($ in thousands)

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Credit Rating










4

9

$      104,863

24.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

5

$       56,337

13.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

6

$       77,950

23.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

34

322,084

73.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

35

359,658

83.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

24

240,933

72.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

2

1

3,470

0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

2

11,141

2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

12,875

3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

1

6,900

1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

2,800

0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

1,737

0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Total

45

$     437,317

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

43

$     429,936

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

34

$     333,495

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

As of December 31, 2021, Horizon’s loan portfolio had a weighted average credit rating of 3.2, compared to 3.1 as of September 30, 2021 and 3.2 as of December 31, 2020, respectively, with 4 being the highest credit quality rating and 3 being the rating for a standard level of risk.  A rating of 2 represents an increased level of risk and, while no loss is currently anticipated for a 2-rated loan, there is potential for future loss of principal.  A rating of 1 represents deteriorating credit quality and high degree of risk of loss of principal.

As of December 31, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $11.5 million and a fair value of $6.9 million.  As of September 30, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $3.0 million and a fair value of $2.8 million.  As of December 31, 2020, there was one debt investment with an internal credit rating of 1, with a cost of $6.8 million and a fair value of $1.7 million.

Liquidity and Capital Resources

As of December 31, 2021, the Company had $71.4 million in available liquidity, consisting of $45.9 million in cash and money market funds, and $25.5 million in funds available under existing credit facility commitments.

As of December 31, 2021, there was $53.5 million in outstanding principal balance under our $125.0 million revolving credit facility (“Key Facility”).  The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $150.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.

Additionally, as of December 31, 2021, there was $78.8 million in outstanding principal balance under our $100 million senior secured debt facility with a large U.S.-based insurance company at an interest rate of 4.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.  Subsequent to year-end 2021, the Company amended its senior secured debt facility, increasing the commitment by $100 million to enable its wholly-owned subsidiary to issue up to $200 million of secured notes.  The amendment to the facility extends the investment period to June 2023 and the maturity date to June 2028. In addition, the amendment, among other things, reduces the applicable margin used to calculate the credit facility’s interest rate on the Company’s borrowings above $100 million. Such borrowings will be priced at the three-year USD mid-market swap rate plus 3.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The facility is collateralized by certain of the Company’s assets.

Horizon Funding Trust 2019-1, a wholly-owned subsidiary of HRZN, previously issued $100.0 million of Asset-Backed Notes (the “Notes”) rated A+(sf) by Morningstar Credit Ratings, LLC.  The Notes bear interest at a fixed interest rate of 4.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} per annum and have a stated maturity date of September 15, 2027.   The reinvestment period of the Notes ended July 15, 2021 and the maturity is September 15, 2027. As of December 31, 2021, the Notes had an outstanding principal balance of $70.5 million.

During the three months ended December 31, 2021, the Company sold 784,718 shares of common stock under its ATM offering program with Goldman Sachs & Co. LLC and B. Riley FBR, Inc.  For the same period, the Company received total accumulated net proceeds of approximately $12.8 million, including $0.3 million of offering expenses, from these sales.

As of December 31, 2021, the Company’s debt to equity leverage ratio was 106{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, within the Company’s 80-120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} targeted leverage range.  The asset coverage ratio for borrowed amounts was 194{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Liquidity Events

During the quarter ended December 31, 2021, Horizon experienced liquidity events from seven portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.

In October, Getaround, Inc. prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In October, Topia Mobility, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In October, HRZN received warrant proceeds of $0.1 million from its investment in Education Elements, Inc.

In November, CVRx, Inc. prepaid its outstanding principal balance of $20.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In November, MVI (ABC), LLC (assignee of Stereovision Inc.) paid its outstanding principal balance of $3.5 million on its venture loan, plus interest. 

In December, HRZN received $7.0 million from the sale of its debt investment in Betabrand Corporation. 

In December, HRZN received cash proceeds of $0.3 million from the sale of shares in Qualtrics International Inc., which HRZN received in connection with the sale of Clarabridge, Inc.

Net Asset Value

At December 31, 2021, the Company’s net assets were $245.3 million, or $11.56 per share, compared to $212.6 million, or $11.02 per share, as of December 31, 2020. 

For the quarter ended December 31, 2021, net increase in net assets resulting from operations was $2.3 million, or $0.11 per share, compared to a net increase in net assets resulting from operations of $2.4 million, or $0.13 per share, for the quarter ended December 31, 2020.

Stock Repurchase Program

During the quarter ended December 31, 2021, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through December 31, 2021, the Company has repurchased 167,465 shares of its common stock at an average price of $11.22 on the open market at a total cost of $1.9 million.

Recent Developments

On January 7, 2022, the Company funded a $1.3 million debt investment to an existing portfolio company, Unagi Inc.

On January 21, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a developer of prescription digital diagnostic and therapeutic products focused on pediatric behavioral health conditions.

On January 26, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Castle Creek Biosciences, Inc.

On January 28, 2022, the Company funded a $1.0 million debt investment to an existing portfolio company, Alula Holdings, Inc.

On February 1, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, Dropoff, Inc.

On February 7, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Canary Medical Inc.

On February 10, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a software-enabled services provider focused on planning, migration, operation and automation of SAP in the cloud.

On February 11, 2022, Quip NYC Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Quip NYC Inc.

On February 23, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, NextCar Holding Company, Inc.

On February 24, 2022, LiquiGlide, Inc. prepaid its outstanding principal balance of $2.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in LiquiGlide, Inc.

Monthly Distributions Declared in First Quarter 2022

On February 25, 2022, the Company’s board of directors declared monthly distributions of $0.10 per share payable in each of April, May and June 2022.  The following table shows these monthly distributions, which total $0.30 per share:

Monthly Distributions

Ex-Dividend Date

Record Date

Payment Date

Amount per Share

March 17, 2022

March 18, 2022

April 14, 2022

$0.10

April 18, 2022

April 19, 2022

May 16, 2022

$0.10

May 17, 2022

May 18, 2022

June 15, 2022

$0.10


Total:

$0.30

After paying distributions of $1.25 per share deemed paid for tax purposes in 2021, declaring on October 22, 2021 a distribution of $0.10 per share payable January 14, 2022, and generating taxable earnings of $1.48 per share in 2021, the Company’s undistributed spillover income as of December 31, 2021 was $0.51 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.

When declaring distributions, the Horizon board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.

Conference Call

The Company will host a conference call on Wednesday, March 2, 2022, at 9:00 a.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The access code for all callers is 13726805.  The Company recommends joining the call at least 10 minutes in advance.  In addition, a live webcast will be available on the Company’s website at www.horizontechfinance.com. 

A webcast replay will be available on the Company’s website for 30 days following the call.

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of HRZN is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in HRZN’s filings with the Securities and Exchange Commission. HRZN undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected] 
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected] 
(646) 677-1819

Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Assets and Liabilities
(Dollars in thousands, except share and per share data)


December 31,

December 31,

2021

2020





Assets



Non-affiliate investments at fair value (cost of $452,387 and $343,158, respectively)

$       458,075

$     343,498

Non-controlled affiliate investments at fair value (cost of $0 and $6,854, respectively)

—

7,547

Controlled affiliate investments at fair value (cost of $1,450 and $1,500, respectively)

—

1,500

Total investments at fair value (cost of $453,837 and $351,512, respectively)

458,075

352,545

Cash

38,054

19,502

Investments in money market funds

7,868

27,199

Restricted investments in money market funds

1,359

1,057

Interest receivable

6,154

4,946

Other assets

2,450

1,908

Total assets

$       513,960

$     407,157





Liabilities



Borrowings

$       257,613

$     185,819

Distributions payable

6,365

5,786

Base management fee payable

706

563

Incentive fee payable

2,015

975

Other accrued expenses

1,926

1,417

Total liabilities

268,625

194,560





Commitments and contingencies








Net assets



Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2021 and December 31, 2020

—

—

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 21,384,925 and 19,453,821 shares issued and 21,217,460 and 19,286,356 shares outstanding as of December 31, 2021 and December 31, 2020, respectively

22

19

Paid-in capital in excess of par

301,359

271,287

Distributable earnings

(56,046)

(58,709)

Total net assets

245,335

212,597

Total liabilities and net assets

$       513,960

$    407,157

Net asset value per common share

$           11.56

$        11.02






Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except share and per share data)


For the Three Months Ended

For the Year Ended

December 31,

December 31,

2021

2020

2021

2020

Investment income







Interest income on investments







Interest income on non-affiliate investments

$        15,194

$          9,217

$         54,159

$        41,503

Interest income on affiliate investments

39

157

252

689

Total interest income on investments

15,233

9,374

54,411

42,192

Fee income







Prepayment fee income on non-affiliate investments

1,651

434

4,111

2,345

Fee income on non-affiliate investments

61

223

1,481

1,335

Fee income on affiliate investments

—

35

12

45

Total fee income

1,712

692

5,604

3,725

Dividend income







Dividend income on controlled affiliate investments

—

—

—

118

Total dividend income

—

—

—

118

Total investment income

16,945

10,066

60,015

46,035

Expenses







Interest expense

3,253

2,342

12,034

9,673

Base management fee

2,022

1,593

7,617

6,458

Performance based incentive fee

2,015

975

7,055

5,187

Administrative fee

456

276

1,285

1,016

Professional fees

544

445

1,892

1,540

General and administrative

369

312

1,511

1,190

Total expenses

8,659

5,943

31,394

25,064

Net investment income before excise tax

8,286

4,123

28,621

20,971

Provision for excise tax

227

222

401

222

Net investment income

8,059

3,901

28,220

20,749









Net realized and unrealized loss on investments







Net realized loss on non-affiliate investments

(486)

(18,644)

(2,858)

(14,686)

Net realized loss on non-controlled affiliate investments

(390)

—

(390)

—

Net realized loss on controlled affiliate investments

—

—

—

(12)

Net realized loss on investments

(876)

(18,644)

(3,248)

(14,698)

Net realized loss on extinguishment of debt

—

—

(395)

—

Net realized loss

(876)

(18,644)

(3,643)

(14,698)

Net unrealized (depreciation) appreciation on non-affiliate investments

(4,811)

17,020

5,503

1,585

Net unrealized appreciation (depreciation) on non-controlled affiliate investments

1,019

120

(848)

(1,014)









Net unrealized depreciation on controlled affiliate investments

(1,125)

—

(1,450)

(258)

Net unrealized (depreciation) appreciation on investments

(4,917)

17,140

3,205

313

Net realized and unrealized loss

(5,793)

(1,504)

(438)

(14,385)









Net increase in net assets resulting from operations

$            2,266

$            2,397

$         27,782

$          6,364

Net investment income per common share

$              0.39

$              0.21

$             1.41

$            1.18

Net increase in net assets per common share

$              0.11

$              0.13

$             1.39

$            0.36

Distributions declared per share

$              0.35

$              0.30

$             1.25

$            1.25

Weighted average shares outstanding

20,622,770

18,794,836

20,027,420

17,534,528

SOURCE Horizon Technology Finance Corporation

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Here are all the companies taking action on the Russia-Ukraine war so far

Here are all the companies taking action on the Russia-Ukraine war so far

All eyes are on Russia this week as the West’s escalating docket of economical penalties offer a more challenging-than-predicted blow to the country’s economic climate, complicated a many years-lengthy effort and hard work by President Vladimir Putin to make the program sanction-proof.

To incorporate to the economic blowback, Corporate The us and a growing amount of multinational organizations have joined in protest of Moscow’s military services assault on Ukraine, moving to sever enterprise dealings with Russia or take a stand in support for Ukrainian refugees.

Steps by the U.S. and Europe, like a move to block some Russian banking institutions from the SWIFT payment network and sanctions on the Central Lender of Russia, have presently sent the ruble cratering much more than 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and stored the Moscow Stock Exchange shut on Monday. A sharper economic fallout is underway, with JPMorgan warning the state is poised to enter a economic downturn.

More penalizing bulletins from multinational firms expected in the week in advance are most likely to even further derail the economic image for Russia and the way of daily life for its citizens.

The repercussions for Russia’s money technique, even in early phases and nevertheless widening, have previously proved so consequential that Deutsche Bank strategist Jim Reid considered the latest situations “a money war.”

JPMorgan was the initial financial institution on Wall Road to make a wager on the financial fallout for Russia that could ensue, estimating the country’s economic system could agreement 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} quarter above quarter, saar [seasonal adjusted annualized rate], in 2Q, and about 3.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the year.

“These sanctions will pretty much absolutely hit their mark on the Russian economic climate which now seems to be headed for a deep economic downturn and the imposition of cash controls,” JPMorgan’s group stated.

Right here are the initially round of actions from a host of significant-title organizations that commenced to trickle in modern times:

Common Motors

Basic Motors (GM) explained it would briefly halt car or truck exports to Russia in reaction to its invasion of Ukraine. The Detroit enterprise sells about 3,000 cars in Russia and does not have crops based in the state.

“Our ideas are with the persons of Ukraine at this time,” GM explained in a statement. “The loss of everyday living is a tragedy and our overriding issue is for the safety of folks in the area.”

Disney

The Walt Disney Company (DIS) suspended motion picture releases in Russia and said it is doing the job to present humanitarian alleviate to Ukrainian refugees fleeing the nation. Disney issued the adhering to statement:

“Given the unprovoked invasion of Ukraine and the tragic humanitarian disaster, we are pausing the release of theatrical films in Russia, which include the upcoming Turning Red from Pixar. We will make foreseeable future company choices based on the evolving situation. In the meantime, provided the scale of the rising refugee disaster, we are doing work with our NGO companions to give urgent support and other humanitarian guidance to refugees.”

Shell

Shell (SHEL) claimed it will exit all Russian functions, like its partnership with Russian electricity conglomerate Gazprom.

“We are stunned by the reduction of lifetime in Ukraine, which we deplore, ensuing from a senseless act of armed service aggression which threatens European security,” CEO Ben van Beurden claimed in a statement.

Dell

Dell Systems (DELL) has verified to Yahoo Finance that it has suspended merchandise profits in Ukraine and Russia, also furnishing the following statement:

“Our ideas are with these households who have shed loved kinds and all who are impacted. Our top priority, at this time, is supporting our Ukrainian crew customers as they endeavor to relocate to a secure and secure natural environment. We are closely monitoring this condition and are working with personnel to address their personalized or family situations. We have suspended product or service product sales in Ukraine and Russia. We will proceed to intently check the situation to figure out our future actions.”

Meta

Facebook mother or father Meta (FB) has barred ads from Russian condition media on its web-site. The firm also mentioned it is in speak to with the Ukrainian govt and restricted obtain to many accounts in the place belonging to Russian condition media corporations at the request of officials.

“We keep on being vigilant to emerging traits and stand completely ready to acquire additional action to meet up with the requires of this ongoing conflict,” the organization stated.

Twitter

Twitter (TWTR) temporarily paused advertisements in Ukraine and Russia “to be certain vital general public protection facts is elevated and adverts do not detract from it.”

Google

Alphabet Inc.’s Google (GOOG, GOOGL) banned Russia’s condition-owned media outlet RT and other channels from accumulating revenue for adverts on their internet websites, applications, and YouTube video clips.

Delta Air Lines

Delta (DAL) halted its alliance with Russia’s flagship airline Aeroflot. The organization withdrew its code from Aeroflot-operated companies over and above Moscow’s Sheremetyevo Airport and Aeroflot’s code from Delta-operated services from Los Angeles and New York-JFK.

Tesla, SpaceX

At the ask for of Ukraine’s vice prime minister and minister of digital transformation Mykhailo Fedorov, Tesla (TSLA) CEO Elon Musk claimed Starlink, the web provider provided by SpaceX, is energetic in Ukraine, with “more terminals en route.” A resident of Poland on Twitter also posted an e mail indicating the E.V.-maker has manufactured Superchargers in Poland, Slovakia, and Hungary free to assistance Ukrainians trying to escape the war. Tesla did not right away react to Yahoo Finance’s ask for for a lot more information and facts.

Fedex, UPS

Transport giants FedEx (FDX) and UPS (UPS) have suspended shipments into Russia.

BP

BP (BP) is divesting its 19.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} stake in Russian controlled oil company Rosneft. The transfer will appear with a significant $25 billion demand. BP has accomplished company in Russia for a few many years.

Intel, AMD

Intel (INTC) and AMD (AMD) have reportedly suspended chip shipments into Russia. A spokesperson for AMD was unable to comment to Yahoo Finance on the report. A spokesperson for Intel did not straight away return Yahoo Finance’s request for comment.

Airbnb

Residence rental platform Airbnb (ABNB) vowed to present totally free, brief-time period housing for as many as 100,000 Ukrainian refugees fleeing the country.

Etsy

Etsy (ETSY), the online market centered on handmade or vintage things, reported it will cancel all balances — about $4 million worthy of across listing, transaction, and other costs — owed by sellers in Ukraine on its system.

HSBC

British bank HSBC (HSBC) is envisioned to tail off its associations with a lineup of Russian banks together with the next-premier, VTB, according to a report by Reuters, citing an inside memo.

NYSE, Nasdaq

Nasdaq Inc. and the New York Inventory Exchange have briefly suspended buying and selling for Russia-based mostly businesses shown on their exchanges.

—

Brian Sozzi is an editor-at-significant and anchor at Yahoo Finance. Observe Sozzi on Twitter @BrianSozzi and on LinkedIn.

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Alexandra Semenova is a reporter for Yahoo Finance. Abide by her on Twitter @alexandraandnyc

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Russia hikes rate to 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in emergency move, tells companies to sell FX

Russia hikes rate to 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in emergency move, tells companies to sell FX

Russian Rouble coins are seen in entrance of exhibited descending stock graph in this illustration taken, February 24, 2022. REUTERS/Dado Ruvic/Illustration

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  • Central lender raises crucial rate to 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from 9.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
  • Moved aimed at addressing rouble, inflation
  • Russia tells companies to be all set to promote Forex

Feb 28 (Reuters) – The Russian central lender elevated its crucial interest price to 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from 9.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Monday in an emergency transfer, and authorities advised export-concentrated businesses to be prepared to provide overseas currency as the rouble tumbled to file lows.

The rouble strike a very low of 120 to the greenback on electronic forex trading system EBS after President Vladimir Putin ordered his navy command to put nuclear-armed forces on substantial alert on Sunday, while the West imposed severe sanctions in opposition to Russia.

The central financial institution, which suggests it targets inflation at 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and will do all needed to assure money security, reported the rate increase will convey deposit costs to concentrations “desired to compensate for the increased depreciation and inflation challenges”.

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“This is wanted to support economic and cost steadiness and secure citizens’ savings from depreciation,” it stated.

The charge hike to stages previously mentioned the 17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} observed in 2014 when Russian annexed Crimea from Ukraine will come immediately after Western international locations moved to block particular Russian banks’ access to the SWIFT worldwide payment procedure to punish Moscow for its invasion of Ukraine.

Russia calls its actions in Ukraine a “distinctive operation” that it states is not developed to occupy territory but to demolish its southern neighbour’s army abilities and seize what it regards as risky nationalists.

“Exterior disorders for the Russian economic system have drastically improved,” the central lender said in a assertion.

Central Financial institution Governor Elvira Nabiullina will maintain a briefing at 1300 GMT, the bank claimed.

In yet another try to assistance the rouble, the central bank and the finance ministry mentioned they will jointly come to a decision on ordering Russian exporting companies to offer 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of their foreign forex revenues on the market.

The latest moves include to a slew of actions announced since Thursday to assist domestic marketplaces, as the point out scrambles to deal with the broadening fallout from Western sanctions.

Russian authorities have also requested brokers to suspend quick providing on the Russian market place and prevent executing orders by international legal entities and men and women to provide Russian securities.

“These steps may support calm down increased sector nervousness, but at the exact same time they undermine the basis of the monetary coverage, centered on inflationary focusing on and adaptable trade level,” BCS World wide marketplaces claimed in a note.

“Unfavourable exterior surroundings produced Russia’s financial policy unsustainable and we do not rule out a attainable level hike likely forward or even further sudden and non-market selections.”

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Russia Ties May Hurt Thousands of European Companies

Russia Ties May Hurt Thousands of European Companies

PARIS — French energy providers functioning in Russia’s Arctic Sea. Italian luxurious boutiques close to Purple Sq.. German vehicle factories all around the Russian south.

As the United States and European Union utilize sanctions to penalize Russia for its invasion of Ukraine, European businesses are bracing for the probability that the punishment intended for Moscow could hurt them, far too.

The sanctions, which involve preventing the government and financial institutions from borrowing in worldwide economical marketplaces, blocking technologies imports and freezing assets of influential Russians, experienced been drawn up to optimize discomfort to the Russian overall economy even though inflicting as little hurt as doable in the European Union, the French finance minister, Bruno Le Maire, reported Friday.

But thousands of overseas corporations that have finished small business in Russia for several years are bracing for an unavoidable economic blowback, and war in Ukraine threatens to disrupt offer chains and drag down Europe’s financial state just as it was beginning to recuperate from the lashing of Covid lockdowns.

“The assault on Ukraine signifies a turning issue in Europe,” Christian Bruch, the main govt of Germany-based Siemens Electricity, a key producer of turbines and turbines, mentioned this 7 days. “We as a corporation now have to examine particularly what this circumstance indicates for our business.”

The European Union is Russia’s most significant investing spouse, accounting for 37 p.c of Russia’s international trade in 2020. Substantially of that is strength: About 70 percent of Russian fuel exports and 50 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its oil exports go to Europe.

And when sales to Russia represent just around 5 percent of Europe’s full trade with the world, for many years it has been a critical destination for European firms in a variety of industries, which include finance, agriculture and foodstuff, electrical power, automotive, aerospace and luxurious merchandise.

Some European companies, specially in Germany, have experienced organization ties to Russia for centuries. Deutsche Bank and Siemens, the massive conglomerate that is the parent firm of Siemens Electricity, have been doing business there given that the late 19th century. Through the Chilly War, economic ties were being found as a way to manage relations across the Iron Curtain.

Just after the fall of the Soviet Union, Western firms arrived to Russia for unique motives, whether or not to provide Renaults or Volkswagens to the country’s developing urban center course, or to cater to a rising cadre of wealthy elites searching for Italian and French luxuries. Other needed to sell German tractors to Russian farmers, or to get Russian titanium for airplanes.

While some multinationals, this kind of as Deutsche Bank, drew down their dealings in Russia following its annexation of Crimea in a 2014 army procedure, other individuals have labored assiduously to grow their sector share in new yrs, and had been boldly angling to extend their Russian small business — even as President Vladimir V. Putin organized to invade the neighboring country of Ukraine.

Final month, 20 of Italy’s best executives structured a video call with Mr. Putin to communicate about strengthening financial ties even though Russian troops ended up massing about Ukraine’s border and European leaders were being discussing sanctions.

The chiefs of UniCredit bank, the Pirelli tire organization, the condition-owned utility Enel and other folks listened for over half an hour as Mr. Putin talked up Italian business investments and prospects in Russia.

The phone, held Jan. 25, riled European politicians and underscored the conflicting financial interests dealing with Europe as it now moves to punish Moscow with a barrage of sanctions for attacking Ukraine. A very similar connect with established for subsequent 7 days with German company leaders, like those people from the electricity enterprise Uniper and the supermarket chain Metro, was referred to as off only on Thursday.

But with huge financial belongings at stake, European Union leaders have sought to wander a fantastic line in modern times around the scope of the sanctions, which fell limited of the additional sweeping economic clampdown that some supporters of Ukraine have demanded.

At just one issue through frenzied negotiations this week, Italy’s associates sought to have products generated by its luxurious field excluded from any sanctions offer. They also argued for narrower sanctions that omit main crackdowns on Russian banking companies, as did Austria, whose Raiffeisen Financial institution Intercontinental maintains hundreds of branches in Russia, diplomats explained.

Additional noteworthy is the omission of sanctions that would harm Russian electricity imports to Europe, in which a phalanx of influential vitality businesses from Paris to Berlin keep important passions. Nor did allies shut Russia’s economic climate from the global payment technique identified as SWIFT, which is made use of by banks in 200 international locations, drawing condemnation from critics who reported Europe’s leaders were being placing economic passions higher than the human toll on Ukraine.

That is a convenience for European international locations whose corporations have massive corporate presence in Russia.

For France alone, 35 of the 40 greatest French companies stated on the country’s CAC 40 inventory exchange have major Russian investments, from Auchan supermarkets on the streets of Moscow, to the liquefied pure gas functions of the French strength huge TotalEnergies in the Yamal Peninsula, earlier mentioned the Arctic Circle. All but two of the 40 corporations outlined on the DAX index in Frankfurt have investments in Russia.

Around 700 French subsidiaries run in Russia in a selection of industries using in excess of 200,000 personnel, according to the French finance ministry.

Although Mr. Le Maire pledged that the impact to the French overall economy from sanctions would be nominal, the hit to some French companies was considerably from obvious.

Amongst the most uncovered is the French automaker Renault, which has two factories in Russia and is the primary automobile producer there as a result of a partnership with Avtovaz, which would make the Lada, the most well-liked car or truck in Russia. Russia is Renault’s second major market place immediately after France.

Previous 7 days, Luca de Meo, the company’s chief govt, warned that worsening of tensions amongst Russia and Ukraine could guide “to one more provide chain crisis” for the business.

That trouble has already strike Volkswagen, which explained Friday that it would suspend functions for numerous days upcoming week at two factories in Jap Germany that make electrical cars because deliveries of vital pieces from western Ukraine have been interrupted by fighting.

Volkswagen could also be hurt by sanctions from Russia, exactly where considering that 2009 it has experienced a manufacturing facility in Kaluga that employs about 4,000 people manufacturing its Tiguan and Polo products, as effectively as the Audi Q8 and Q9, and the Skoda Speedy. Mercedes-Benz has a factory exterior of Moscow, when BMW is effective with a community associate. All 3 have invested in the Russian current market and a developing cadre of buyers that can afford to pay for its cars.

This week, nevertheless, as Russia strafed Ukrainian cities and earth leaders moved to impose sanctions, Volkswagen stated the influence to its company in Russia would be “continuously established by a disaster staff.”

BMW stated “politics sets out the policies inside which we run as a company” and that “if the framework conditions change, we will assess them and decide how to offer with them.”

And then there are the banking institutions.

Austria’s Raiffeisen Financial institution, Italy’s UniCredit and Société Générale of France are among the lender that have sizeable ties to Russia. Italian and French financial institutions experienced excellent claims of all around $25 billion in Russia at the end of previous calendar year, according to Financial institution of Worldwide Settlements info.

France, Italy and Germany have been the major European powers pressing not to slash Russia off from the SWIFT world payment procedure. Chopping Russia out would make it tough for European creditors to obtain money owed from Russian sources — or to spend for Russian gas, which these countries have appear to rely on, specially in Europe’s present-day strength crunch.

Despite the initiatives to minimize the agony to their own nations around the world, European officials acknowledged the circumstance would almost certainly get even worse just before it increases.

“It will not be possible to protect against sectors of the German financial system from remaining affected,” the German financial state minister, Robert Habeck, mentioned Thursday.

“The value of generating peace achievable, or to return to the diplomatic desk,” he stated, “is that we at minimum make the financial sanctions chunk.”

Liz Alderman noted from Paris and Melissa Eddy from Berlin.

Posted on

Global finance grapples with Ukraine crisis as shares slump

Global finance grapples with Ukraine crisis as shares slump
  • European lender stocks slide Austria’s RBI down 23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
  • Russia’s VTB down 41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, Sberbank down 37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} right after sanctions
  • Britain’s Lloyds on inform for cyberattacks
  • U.S. lender stocks fall led by Citigroup
  • German market place regulator monitoring disaster

FRANKFURT/LONDON/NEW YORK, Feb 24 (Reuters) – Economical corporations from Frankfurt to Wall Road suffered hefty share price falls on Thursday as they grappled with the influence of Russia’s invasion of Ukraine, digested recently-imposed sanctions and rushed to advise customers on how to reply.

Whilst several bankers have played down the importance of Russia to their operations, it is the European Union’s fifth-greatest investing companion, with a 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} share of trade, details reveals. U.S. trade with Russia is significantly less than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its overall.

Deutsche Bank (DBKGn.DE), Germany’s largest lender, said it had contingency ideas in location as U.S. and European officers imposed additional sanctions on Moscow. study a lot more

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British financial institution Lloyds reported it was on “heightened notify” for cyberattacks, when German insurance policies and asset administration huge Allianz (ALVG.DE) stated that it had frozen its Russian govt bond exposure. study a lot more

While U.S. banking companies had been perfectly-geared up for the steps announced so significantly about Russia’s aggression toward Ukraine, they concerned that new actions could raise the charge and complexity of enforcing them. Money establishments are the most important enforcers of sanctions. read through much more

“At any time there is any sort of economical strain throughout borders, fiscal businesses, significantly financial institutions, are inclined to be in the centre of it due to the fact they have organizations in all people areas,” stated Jamie Cox, managing associate at Harris Financial Group in Richmond, Virginia.

The United States imposed new sanctions against important Russian financial institutions, like the country’s two premier loan companies, Sberbank (SBER.MM) and VTB (VTBR.MM), aimed at restricting Russian obtain to the U.S. financial program. read through extra

Shares in Sberbank and VTB fell by 37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 41{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} respectively.

“These sanctions concentrate on Russia’s domestic fiscal process, triggering bank operates and forcing Russia’s central financial institution to go on hiking charges,” reported Clay Lowery, govt vice president at the Institute of International Finance (IIF), the most significant intercontinental banking team.

Shares of foremost financial institutions plunged with the European banking sector (.SX7P) shut down 8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, steeper than a 3.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} slide for the Euro Stoxx index (.STOXXE).

In the United States, the S&P 500 banking index (.SPXBK), shut down 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Citigroup (C.N), which has the most important Russian exposure among U.S. financial institutions, fell 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Some banking institutions organised phone calls for clientele with gurus to analyze the condition, invitations seen by Reuters showed, with JPMorgan scheduling a person with Michael Singh, senior fellow at the Washington Institute for Around East Plan.

Goldman Sachs ran a call for its personal wealth clientele hosted by Alex Youthful, a previous chief of British overseas intelligence services MI6, who is now an personnel of the firm.

CONTINGENCY Planning

European banking companies are most exposed to Russia, specifically in France, Italy and Germany, far outstripping U.S. banks’ publicity, data from the Bank for Global Settlements shows.

And those banking institutions with important operations in Russia have been toughest strike just after its forces invaded Ukraine by land, air and sea, with the largest assault by just one point out versus another in Europe given that Globe War Two. go through much more

Austria’s Raiffeisen Financial institution Worldwide (RBIV.VI) fell 23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, even though shares in Societe Generale (SOGN.PA) lost 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, whilst the French bank it reported its Russian device Rosbank ongoing to operate usually. read a lot more

UniCredit (CRDI.MI) shares fell 13.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and activated an automated trading suspension, although the Italian lender explained its Russia “exposures are extremely lined”.

Shares in Deutsche Lender, which like numerous creditors in recent yrs has diminished its existence in Russia as sanctions have expanded, ended up down 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, the largest decline amid German blue chips.

“We have contingency designs in put,” the financial institution said in a statement. A spokesperson declined to elaborate, but claimed “risks are properly contained”.

Reuters Graphics

German money regulator BaFin claimed it was keeping a watchful eye on the crisis.

Fresh new SANCTIONS

European Union leaders will impose new sanctions on Russia, freezing its assets, halting obtain of its banking companies to the European economic market place and focusing on “Kremlin pursuits” in excess of its “barbaric assault”, senior officials mentioned. go through far more

But in what will be a relief to Europe’s banking institutions, the EU is unlikely at this stage to choose steps to cut off Russia from the SWIFT world-wide interbank payments system, various EU sources stated. go through far more

British Primary Minister Boris Johnson unveiled a deal of “serious” sanctions in opposition to Russia on Thursday, targeting financial institutions, customers of President Vladimir Putin’s closest circle and the particularly rich who love significant-rolling London existence. L8N2UZ366

Both equally Deutsche Lender and Allianz, two of Europe’s most vital money companies and both with operations in Russia, said they had been ready to comply with sanctions.

Allianz, one particular of the world’s largest asset professionals, stated that the share of Russian government bonds in its portfolio was “quite lower” and that it experienced carried out a freeze on them.

RBI this month stated it experienced earmarked 115 million euros ($129 million) in provisions for possible sanctions on Russia. As its shares dropped sharply on Thursday, the financial institution said that it was “premature to assess” the impression of sanctions on its company.

The Austrian team claimed its banking institutions in Russia and Ukraine were being “effectively capitalised and self-funding”.

Some major bankers have been much more involved about the prospective secondary effects of the disaster.

The manager of HSBC (HSBA.L), one particular of Europe’s greatest financial institutions, reported this 7 days that “wider contagion” for world-wide marketplaces was a concern, even if its immediate exposure was confined. examine extra

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