Letter From the President

Dear Colleague,

In today’s media intensive world we receive a constant stream of news and analysis on a variety of topics. The FCFP E-news is published as an extension of those streams with a focus on the commercial credit spectrum. Included in this issue is a tough assessment of the markets as seen through the eyes of Richard Hastings, FCFP Economic Advisor. Hastings has written and presented on the potential of this scenario for the last year with respect to the dangers inherent in the finance metrics of the residential real estate market.

Similarly, I recently read from another advisor who is consistently bullish on the state of the U.S. economy that, "The underlying drivers of economic and earnings growth still appear very strong. However, our research suggests that the financial conditions have now adjusted from a very favorable to more neutral levels and perhaps a bit beyond."

While even the most bullish of reports are suggesting a reevaluation of our market positions, I would assume that each of you who direct a portfolio of credit risk is reviewing those pools of risk in light of the current market changes. The FCFP stands ready to help with your questions or needs in either reviewing the risk or using various risk mitigation tools. Please do not hesitate to contact us directly!

Regards,

Fall Educational Highlights

Financial Analysis for the Credit Professional (FREE*)
Friday, September 7, 2007
9:00 - 12:00 pm
Federation of Credit and Financial Professionals
51 Cragwood Road, Suite 201
South Plainfield, NJ

Emphasis is placed on the analysis and interpretation of financial reporting and the financial statements that result. Key concepts are introduced and examined, with special emphasis on interrelationships and comparisons to peer organizations. Techniques for comparing interim and non-standard periods will be discussed, along with capital-needs modeling methods. Useful tools such as RMA Statistical Surveys and various bankruptcy prediction models are introduced and explained.

Get Better Treatment For Your Claims (FREE*)
Wednesday, October 24, 2007
2:00 pm - 3:00 pm
Anderson Kill & Olick, P.C.
1251 Avenue of the Americas
New York, NY

The bankruptcy reforms of 2005 have taken root. They have produced new reclamation rules and innovations, such as trade creditor carve-outs. Are you prepared to take advantage of these developments to improve your position? This luncheon presentation will provide you with the background and ideas you need to make the most from the new bankruptcy landscape. This educational session will provide you with the background to better understand how to prioritize your claim. This session is going to be interactive, with engaging discussion and Q & A throughout.

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The Credit Crisis of 2007 Begins

by Richard Hastings, CCE
Economic Advisor to the Federation of Credit and Financial Professionals
VP--Sr. Retail Sector Analyst | Bernard Sands

A full-blown crisis developed last week in global financial markets, with some indications that a stock market crash was potentially getting close to occurring. The Federal Reserve, responding to these events, moved quickly to provide additional liquidity in the form of a cut in the rate it charges to banks that borrowe from the Federal Reserve system (this is also known as the discount rate). The target rate for banks borrowing from each other, or the Federal Funds rate, was not changed. Many points of the global credit market system were beginning to fail last week. The Federal Reserve action may help to reduce the impact of failures to the banking system, but it may not truly prevent the underlying causes of the crisis from being as bad as these are, or from getting worse. Click here for additional commentary.

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