Here are three charts which give an overview of trends in the credit markets.  This is important to many out of home companies because they rely on bank financing to help fund capital expenditures and acquisitions.  The first chart shows that a modest majority of lenders have been tightening their loans to commercial borrowers.  Bank credit terms tighten most in periods of recession which are shown in grey.

The second chart shows that loan pricing has been stable.  Pricing rises sharply during a recessions which are shown in grey.

The third chard shows that demand for commercial loans has been picking up. Billboard Insider expects this trend to accelerate with last week’s drop in the Prime rate (on which many out of home loans are based) from 8.5% to 8%.  Loan demand falls during recessions as firms cut discretionary project to conserve cash.

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