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Capital Markets Update – Week of February 8, 2021 (audio)

In an effort to provide even greater transparency around our offerings and our investment platform, the capital markets team provides weekly updates.

Listen below for Charlie’s most recent views on our short-term note program and the current private credit landscape from Percent’s perspective.

Please find the transcript for this video below.

Hi everyone, this is Charlie Lienau, Managing Director in our Capital Markets team here at Percent. Thank you for tuning into this week’s audio update where we provide a recap of the market, and an update on our short term note programs for the week ending February 7th.  

Looking at the equity markets, all three major benchmarks notched their best week since November. The DOW gained 3.9% for the week, while the S&P 500 and the NASDAQ gained 4.7% and 6%, respectively. Despite stubbornly high COVID-19 case counts, we are starting to see infection trends improve. Expectations on fiscal-stimulus, with the Senate passing a budget resolution early Friday to pass a $1.9 trillion coronavirus relief bill without Republican votes, and progress on vaccine distribution continue to sustain the market performance. In other news, we also saw crude oil trade to its highest levels in over a year, setting a 10% gain for the week. The Labor Department reported the U.S. added 49,000 jobs in January, which disappointed given this came in below market expectations. This week we are also in corporate earnings season, and the majority of earning results so far have surpassed analyst expectations, further supporting strong market fundamentals.

Switching to the fixed income side. The 10yr and 30yr treasuries finished at 1.19% and 1.97%, eight and ten basis points wider than last week’s close, respectively.  U.S. junk-bond funds saw their first weekly influx of cash in 2021 as investors snap up debt in the riskiest CCC tier that’s notched up gains of 1.96% already this year.

We had net inflows on 3 out of the 5 business days last week, and we continued to see new sign ups and funded accounts join Percent. Looking at our STNP, overall was a bit of a slower week where we only closed and settled two transactions. 

  • EDG1 2021-1, an issuance with new partner Edge Capital, an Idaho-based platform connecting small and medium-sized businesses across the U.S. with capital. Edge leverages a modern technology stack to facilitate the application and servicing process for its customers.  Since inception, Edge Capital has extended $6 million in capital to hundreds of companies. This inaugural transaction closed at $250,000 at an APY of 14.50%. 
  • CHY1 2021-2, a newly structured 30-month offering, originated by Cherry Technologies. This transaction has moved from our PercentRetail to our PercentPrime platform, as we successfully closed this new note at $500,000 at an APY of 10.50%. 

Last week we also launched four offerings, all on our PercentRetail platform, and are glad to report that they are all currently fully subscribed. 

That is all for this week’s update. Thank you for tuning in and your continuous support; have a great week!

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Nothing in this video should be construed as an offer to sell securities or a solicitation of an offer to buy securities. All investment involves risk and the possibility of loss, including loss of principal, and neither past performance nor forward looking information is a guarantee of future results.

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