Energetic Capital

Energetic was started with a simple mission - more deployment. Energetic Capital represents an extension of this mission to provide a better, more comprehensive financing solution for C&I developers. Reach out to learn more: https://lnkd.in/eSSwwmJk

With one-third of U.S. households cutting back on basics to pay energy bills last year, gas price volatility stands out as a primary culprit. Utilities blame 2022 fuel and power contracts for continued retail rate hikes. Conversely, states rich in wind and solar, such as New Mexico, enjoy the lowest rate increases. What measures can be taken to reduce the impact of price volatility?

As the U.S. deficit soars to $1.9 trillion, the Treasury’s growing borrowing needs signal tighter credit and increased underwriting restrictions. This large deficit, against a backdrop of high interest rates, challenges the lending market, pushing for more conservative lending practices. Despite these hurdles, Treasury bonds remain attractive due to their safety and liquidity, keeping yields relatively stable. How can financial institutions navigate the evolving credit landscape and what strategies will best manage these risks?

Last year, private credit funds directed 16% of the $156 billion raised towards ESG products, highlighting a growing emphasis on sustainable investments. This shift comes as green businesses struggle with financing in a high-interest-rate environment. Despite these hurdles, recent indications point to ESG investments delivering higher returns compared to traditional oil and gas investments. What strategies can private credit managers adopt to enhance ESG integration and capitalize on these promising returns?

The International Association of Credit Portfolio Managers (IACPM) reports a decline in the Aggregate Credit Default Index, reflecting heightened expectations of corporate defaults and credit spread widening. This shift suggests that tighter credit markets and increased underwriting restrictions are on the horizon in the corporate bank market.

In June, U.S. corporate bankruptcies surged to the highest monthly level since early 2020, pushing the 2024 total to 346, a 13-year high. This spike reflects the relentless pressures of high interest rates, supply chain disruptions, and waning consumer spending. With the consumer discretionary sector leading at 55 filings this year, how can companies adapt to the current economic challenges?

In 2025-2026, experts significant regional bank failures driven by commercial real estate (CRE) distress. Rising rates and declining asset values are pushing small- and midsize banks to the brink, as they have heavily financed struggling office properties. This shake-up could permanently alter the lending landscape, limiting options for landlords and investors. With 2,114 banks showing "excessive" CRE loan exposure, the risk is substantial. Are the big banks and FDIC prepared to prevent a broader crisis? Suzannah Cavanaugh for The Real Deal

The Supreme Court’s recent ruling against "Chevron deference" marks a seismic shift in U.S. environmental policy, increasing reliance on detailed congressional directives. This decision curtails executive agency powers and complicates achieving climate goals. With the US Environmental Protection Agency (EPA)'s authority over power plants and vehicles now legally vulnerable, the ruling underscores the importance of the Inflation Reduction Act’s incentives for low-carbon energy. Cary Coglianese of University of Pennsylvania notes this empowers the judiciary against administrative decisions. With legal and lobbying efforts poised to reshape future regulations, how can businesses proactively adapt to ensure compliance and sustainability in this evolving landscape? Thought-provoking article by Ben Geman at Axios.

Explore how nuanced financing approaches can transform the landscape for commercial and industrial energy projects. Learn how flexible underwriting can significantly boost project proceeds and ensure the success of sustainable energy solutions.   Check out our latest blog post to see how Energetic Capital is leading the way in optimizing financing terms tailored to the unique aspects of each project.

New research shows that the CRE exposures at the largest US banks more than doubled when accounting for credit lines to REITs, raising required capital from $39 billion to $69 billion—a 75% increase.