The new Democrat controlled House of Representatives is unlikely to impact the surge in new bank lending that many attribute to the pro-business administration of President Donald Trump, according to analysts interviewed by Reuters.
The newly split Congress could actually lead to a spike in new loans thanks to Bipartisan agreement support for new infrastructure spending, which has yet to come to a voteReuters notes.
“Split control of Congress should offer a little more certainty. Less new, potentially business-friendly, regulatory legislation will be enacted, but what’s already been passed won’t be reversed over the next two years,” said Lauren Basmadjian, senior portfolio manager at credit investment adviser Octagon.
According to LPC, U.S. syndicated lending broke records in the first nine months of the year, with $1.9 trillion of loans issued to fund mergers and acquisitions, leveraged buyouts, dividends and for debt refinancing.