Latest news with #LSTA
Zawya
22-05-2025
- Business
- Zawya
Private credit touts resilience amid uncertainty: IFR
Recent market volatility has demonstrated the resilience of private credit, and the asset class is well positioned to withstand any future economic turbulence, according to industry participants. At the US Private Credit Industry Conference on Direct Lending, hosted in Nashville by the loan trade group, the LSTA, and events company DealCatalyst, speakers discussed avenues for growth, such as the proliferation of funds geared towards retail investors. Conference speakers largely agreed that the momentary pause in the broadly syndicated loan market following US president Donald Trump's April announcement of sweeping tariffs presented an opportunity for private credit to take market share. Though market activity has since normalised, there remains a broader trend towards private markets, they said. 'Private credit has been taking share from the liquid credit markets for a while,' Kerry Dolan, managing partner at Brinley Partners, who spoke on the conference's opening panel on Monday morning, told IFR. 'We expect that shift to continue. Private credit also typically increases in popularity during times of volatility as it reduces market risk.' Leveraged buyout activity, however, remains relatively sluggish given a slump in valuations for private equity portfolio companies and, more recently, a cloudier economic outlook given uncertainty around tariffs. Even so, said Eric Muller, portfolio manager and partner at Oak Hill Advisors and CEO of the firm's business development companies, his firm has had strong investment opportunities come its way. 'The buyouts that are happening right now are of very high quality,' Muller said during a Monday afternoon panel on large-cap lending. 'We're seeing add-ons within portfolio companies, as well as refinancings and other transactions that a borrower may need to execute right now and doesn't have the flexibility to wait.' Good exposure Private credit has so far been largely insulated from worries over tariffs. Several private credit managers have estimated that less than 10% of their portfolios face direct exposure to such import taxes. Investor sentiment towards the asset class has remained largely positive in the face of market volatility, Dave Donahoo, head of Americas – wealth management alternatives at Franklin Templeton, told IFR. Donahoo also spoke on a Tuesday morning panel about retail access to private credit investments. 'Private markets price on fundamentals, not market sentiment or technicals,' he said. 'So it's moments like this that the wealth management community – the individual investor – is reminded why having exposure to private markets helps their overall portfolio.' There are concerns, however, about the impact that tariffs may have on the economy at large. A slowdown could weigh on the performance of private credit borrowers, some of which already face challenges from persistently high interest rates, as S&P noted in a May 9 report. Nonetheless, conference speakers were largely sanguine about private credit's ability to navigate a potentially weakening economy. 'We're coming off a relatively strong backdrop if we were to head into a recession,' said Jonathan Bock, a senior managing director at Blackstone and co-CEO of the business development companies Blackstone Private Credit Fund and Blackstone Secured Lending Fund. Certain situations, such as stagflation, are 'challenging for equities but can be okay for credit', said Colbert Cannon, a managing director at HPS Investment Partners. Bock and Cannon spoke alongside Muller on Monday afternoon. Sizing up While the commentary regarding the prospects for private credit was largely upbeat, some speakers expressed caution regarding investment selection, especially as the asset class has taken on large transactions that overlap with the broadly syndicated market. Matt Freund, managing director at Barings and president of Barings BDC, said his firm is not actively seeking to chase after these large deals. 'I'm sceptical of the idea that origination is proprietary in the upper end of the market,' Freund said on a panel focused on investment strategy. But competition is also fierce for loans to lower-middle-market borrowers, and spreads have also tightened significantly among that segment, he said. Though his firm does not emphasise seeking larger transactions, according to Anthony DiNello, head of direct lending at Silver Point Capital, it does have strong relationships with banks, which have proven beneficial in periods of market dislocation. 'Some of our best deals come through relationships with Wall Street banks,' DiNello, who spoke on the same panel as Freund, said.
Yahoo
29-04-2025
- Politics
- Yahoo
DPI receives part of federal library funds, but uncertainty will affect grant services
Wisconsin libraries rely on funding provided by the federal government through the Library Services and Technology Act Grants to States Program. (Photo courtesy of Madison Public Library) The Wisconsin Department of Public Instruction (DPI) received $1.6 million in grants from the federal Institute of Museum and Library Services (IMLS) to support library operations and programming last week, though uncertainty remains for the program. Wisconsin libraries rely on funding provided by the federal government through the Library Services and Technology Act (LSTA) Grants to States Program, but that program has been in danger since President Donald Trump signed an executive order to downsize and begin the process of eliminating the agency. DPI and libraries throughout the state have warned that eliminating the funding would be a blow to statewide support for library programs as the grants fund staff for programs including the interlibrary loan system and other grants. The notification message from IMLS to DPI stated that the partial payment is for the time period through April 2025. It also notified the state agency that 'any additional amounts are subject to the availability of funds, IMLS discretion and other actions' and that 'should those conditions be met, IMLS anticipates issuing supplemental awards and will send the allotment table at that time.' 'At this time, the DPI has not received a final allotment table indicating the amount of funding Wisconsin will receive,' the DPI stated in an update to libraries Tuesday afternoon. 'This is not the typical fashion in which these funds are granted to states, but receiving a partial award provides some stability and relief in the short term.' The uncertainties for federal funding will still have some impact on the services that DPI carries out. Typically, the DPI Library Services office opens grant subawards, which are grants funded by federal funds and administered by the state agency, to library systems in Wisconsin in July. That won't happen this year due to the uncertainty surrounding the amount and timing of future Grants to States funds. 'The DPI will prioritize the Library Services salaries and the tools necessary to do their jobs with this partial allotment,' DPI said in the email. The Library Services team is made up of about 20 people with 16 of the positions funded with federal dollars. 'The team will reassess the viability of providing subawards once more is known about the future of IMLS and LSTA funding.' The amount that the state received is about half of the $3.23 million that Wisconsin received for the Grants to States Program received in 2024. Ben Miller, DPI library services director, had previously told the Examiner that the expected payment would serve as the next milestone for the state agency. There was uncertainty surrounding whether the payment would be sent given the gutting of staff for the IMLS office and the fact that other grants for libraries and museums have already been cut. Wisconsin is part of a multi-state lawsuit challenging the cuts to IMLS. Miller had said that even if the agency received the payment, it will likely be cautious in proceeding with certain actions as the Museum and Library Services Act of 2018, the federal law that the grant program relies on, is up for renewal this fall. DPI spokesperson Chris Bucher said in an email to the Examiner that the state agency is 'encouraged' by the first payment and is 'optimistic given the IMLS note about issuing the supplemental awards.' 'Our top priority remains being [of] service to Wisconsin kids and communities,' Bucher said. DPI also it would continue to provide updates to libraries as the situation evolves and thanked the library community for 'sharing your stories, working with elected officials, and remaining steadfast in the incredible services you provide every day.' Libraries across the state have been working to inform the public about the potential cuts and to advocate for the federal funding with lawmakers. 'Keep being loud and proud about the meaningful work happening in your libraries and communities,' DPI wrote. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
21-04-2025
- Politics
- Yahoo
Wisconsin libraries brace for steep drop in services under federal funding cuts
Madison Public Library Director Tana Elias said advocacy on behalf of libraries by Wisconsin residents and other stakeholders is essential right now. The Madison Public Library is in the process of collecting physical notes from patrons to be mailed to lawmakers. (Photo courtesy of Madison Public Library) Threatened federal funding cuts are causing uncertainty for the future of Wisconsin libraries and the programs they provide to the public, especially for those serving rural areas — and libraries are pushing Wisconsinites to talk to their lawmakers. President Donald Trump signed an executive order in March to downsize and begin the process of eliminating the Institute of Museum and Library Services (IMLS), an agency responsible for providing funding to states, including over $266.7 million last year. In 2024, Wisconsin received $3.23 million from the federal Library Services and Technology Act (LSTA) Grants to States program, which is the largest source of federal funding support for library services in the country. Northern Waters Library Services Director Katherine Elchert called IMLS the 'backbone' of American libraries. While the cuts could affect all libraries, Elchert said the cut would be a 'direct blow' to rural libraries, including those in her system. Elchert's system is one of 15 public library systems across Wisconsin. It's made up of 27 libraries in the northern part of Wisconsin and is one of the smaller population size library systems, but the largest geographical systems. It is expected to get $64,064 in federal funding — or 8% of its total funding — from the federal government in 2025, according to DPI. 'Most [of my libraries] are quite small and the loss of this funding will impact every single library in my system….' Elchert said, adding that patrons might not immediately recognize the impact of cuts. 'It's not like the institute is providing money so your libraries can buy books. It's more providing large, big picture collaborations,' she said. Some of those collaborative programs that could be affected include interlibrary loans, a mechanism for Wisconsin libraries to share information, books and resources across the state, WISCAT, the state's resource sharing platform, and Badgerlink, an online library that gives people access to online databases and educational resources. Ben Miller, library services director for the Wisconsin Department of Public Instruction, said his team is made up of about 20 people, 16 of them funded through federal dollars. They are responsible for providing support to local libraries, including supporting collaborative programs and ensuring they work. Miller said that Wisconsin has had more than 15 million materials moved between libraries each year with the Interlibrary Loan programs and WISCAT. 'If we lost federal funding, we would be down to a skeleton of a skeleton crew of three folks,' Miller said. Badgerlink is funded with state dollars, Miller said, but the staff at DPI is responsible for negotiating contracts and ensuring there is access to Wisconsin residents. 'Our team of people make that happen, and without this federal funding, that state money would pay for content that no one can access,' Miller said. The agency has also worked to make WISCAT more accessible. 'We pay for the platform, we staff it… we manage it, and we have folks that help with those referrals,' Miller said. 'It allows us to cast requests outside of the state even, so you could get a book from Florida into Wisconsin if that is what you need.' The DPI also distributes federal funds in the form of grants that allow libraries to pilot programs that could become part of regular services in the future. A recent example, Miller said, is the JobPod Initiative in Brown County, which has helped provide resources including digital literacy training and technology skills to Wisconsinites seeking a job through their public libraries. Another example of a successful program is the Wisconsin Public Library Consortium, widely known as Libby, which provides people across the state with access to e-books and audiobooks. 'We provided money, found out people loved it, slowly stepped ourselves off, and then the library systems just went nuts and started buying books and things and now we have, like, the second most checkouts in the nation in Wisconsin,' Miller said. 'We were able to stand that up, using this federal money to test the concept, and say, like, 'Hey, this thing, this works. Let's do it,' and then they can incorporate it into their budgets.' Miller said that his team is looking at the potential scenarios and working to provide service until they find out they aren't funded. The last time the agency got communication from the IMLS, Miller said, was after the executive order, but before the appointment of Deputy Secretary of Labor Keith E. Sonderling to serve as acting director of IMLS on March 20. In that communication, Miller said, the federal government notified the agency that it should expect payment on April 22. Tuesday, he said, will be the next milestone. Some states, including California and Washington state, have already received notification that their Grants to States funding has been pulled. Wisconsin's library agency hasn't had any communication with the federal government lately, though it has been monitoring for anything new. Miller said the program officer assigned to Wisconsin was part of the staff put on administrative leave in March. Typically, Miller said, he would be preparing to finalize the budget and preparing to put out grant applications, but he said his agency will be proceeding with caution, even if the state does get the funding on Tuesday. 'We're holding back until we have a better picture of the future… We have questions about how this will look,' Miller said. 'All of this funding is contingent on the Museum and Library Services Act of 2018, which comes up for renewal this October, and so even if we get this money next week, we're going to be really gun shy about putting that out until we know the future of IMLS as an institution and Grants to States moving forward.' Miller said that the agency is also waiting to see what comes from a multi-state lawsuit launched by 20 states, including Wisconsin, challenging the Trump administration's cuts to the IMLS and arguing that it violates the Constitution and the Administrative Procedure Act. Elchert said the programs funded with federal money and the work of the state supporting those programs are important for broadening the collections available to libraries 'particularly in those rural areas that don't have the space or the budget to have those large collections that, say, Madison does.' Elchert noted that South Dakota recently announced it is suspending its interlibrary loan service in light of the federal cuts. 'My library system could not provide all of these resources. It'd be — I don't even know how much it would cost to try and it just wouldn't happen to be frank,' Elchert said. 'So everybody is losing access to all of these larger resources that connect Wisconsin to the larger world.' Elchert noted that the federal cuts are also affecting tribal libraries, which had their federal funds cut a couple of weeks ago. There are two, the Lac Courte Oreilles Ojibwe University Community Library and the Ben Guthrie Lac Du Flambeau Public Library, in her system. The cuts would hit Wisconsin's urban libraries as well. 'Ironically, this [executive order] is supposed to eliminate government inefficiency, but this is an incredibly efficient system to offer these services statewide and have them run at the state level with federal funds or any funds for that matter,' said Tana Elias, director of the Madison Public Library. Elias said that if the funding isn't awarded there will likely be a 'scramble' in July to figure out what programs could be stopped initially and over time. 'It may be that we have to go back to the vendor and renegotiate a contract or renegotiate a reduction in service that we can afford in the meantime, while we wait for all of this to play out,' Elias said. 'It's a lot of uncertainty.' According to a joint statement from Madison Public Library and Madison Children's Museum, IMLS has awarded an average of 18 grants per year to Wisconsin museums, libraries and other institutions over the last 15 years — totaling nearly $70 million dollars over that span. The Madison library was also notified that one of its recent grants that helped support the Observation Deck, a program that was being used to measure and illustrate the impact of library programming and support librarians in improving it, was canceled. She said the library had spent about half of the $240,000 awarded before it was canceled. 'It's a reduction,' Elias said. 'But we have a plan to continue and wrap up that project with the funding that we have now.' That plan includes not moving forward with a second grant request and paying for service directly so the platform can continue to be used. 'We won't be able to expand it and offer it for other public libraries to use,' she said. Elias added that she was concerned that the cuts could limit professional opportunities for library staff. Currently, she said many of those opportunities become available through DPI at little to no cost. She said professional training and ensuring staff have support will be even more important if public services shrink in other areas. 'Library funding is being targeted. Humanities funding is being targeted. Arts funding is coming. We all know that education funding is being targeted as more of those funds slip away from us… as all of those safety nets shrink and fray, people will be coming to libraries more and more,' Elias said. 'I think it's even more important that we continue to have strong funding for libraries, because they're kind of a safety net for a lot of people.' Elias said advocacy on behalf of libraries by Wisconsin residents and other stakeholders is essential right now. The Madison Public Library is in the process of collecting physical notes from patrons to be mailed to lawmakers. The Wisconsin Public Library Consortium, which includes all of the public library systems in the state, has put together a webpage to inform residents about and encourage them to lobby their lawmakers for funding. 'It does make a difference. Legislators do listen to their constituents, and I think because we are working on a statewide campaign across the whole state, we'll hit both those Republican and Democratic legislators… I think having bipartisan support is really important,' Elias said. Elchert of the Northern Waters system said that librarians are 'scrappy' and everyone is working to help the community. 'It's important that patrons know that their library services will be impacted if these cuts go through,' Elchert said. 'It's not a matter of will it be felt, but how badly will it be felt.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
12-04-2025
- Politics
- Yahoo
Letters to the Editor: A retired librarian attests to the 'positive outcomes' that now-terminated federal grants provided
To the editor: Thank you for prominently featuring the termination of federal monies to libraries on the front page of your California section ('California libraries losing millions in funding after Trump terminates federal grant,' April 4). Although not as far-reaching, perhaps, as cuts to USAID or the U.S. Department of Education, the elimination of Library Services and Technology Act grant funds will impact library services to thousands of people throughout California. I am retired now, but for 10 years worked for the California State Library, which distributes federal library funds statewide. I administered and monitored many LSTA grants and assessed their positive outcomes. I saw thousands of young people benefit from the state's after-school homework help programs, as well as its highly effective summer reading program. I was also proud that the library helped veterans constructively engage with their communities. California needs its libraries and the LSTA funds that support them. Cindy Mediavilla, Culver City .. To the editor: The Trump administration has just terminated the $15.7-million California State Library grant, which benefited child literacy, reading programs for veterans and work-readiness programs. To put this in perspective, Trump goes to Florida on many weekends to play golf, costing taxpayers millions each time, according to The Guardian. In other plain English words, "Do as I say, not as I do." Marty Foster, Ventura .. To the editor: It should come as no great surprise that the Trump administration is cutting funds to libraries. President Trump and his MAGA bros do not want people to read, or to think, or to ask questions, or to learn about folks different from themselves, or to develop empathy for others, or to dream of a better world — one in which all people are valued and respected — and what is necessary to achieve that. Where can all of this happen? In a library! Sandy Schuckett, Los Angeles This story originally appeared in Los Angeles Times.
Los Angeles Times
12-04-2025
- Politics
- Los Angeles Times
Letters to the Editor: A retired librarian attests to the ‘positive outcomes' that now-terminated federal grants provided
To the editor: Thank you for prominently featuring the termination of federal monies to libraries on the front page of your California section ('California libraries losing millions in funding after Trump terminates federal grant,' April 4). Although not as far-reaching, perhaps, as cuts to USAID or the U.S. Department of Education, the elimination of Library Services and Technology Act grant funds will impact library services to thousands of people throughout California. I am retired now, but for 10 years worked for the California State Library, which distributes federal library funds statewide. I administered and monitored many LSTA grants and assessed their positive outcomes. I saw thousands of young people benefit from the state's after-school homework help programs, as well as its highly effective summer reading program. I was also proud that the library helped veterans constructively engage with their communities. California needs its libraries and the LSTA funds that support them. Cindy Mediavilla, Culver City .. To the editor: The Trump administration has just terminated the $15.7-million California State Library grant, which benefited child literacy, reading programs for veterans and work-readiness programs. To put this in perspective, Trump goes to Florida on many weekends to play golf, costing taxpayers millions each time, according to The Guardian. In other plain English words, 'Do as I say, not as I do.' Marty Foster, Ventura .. To the editor: It should come as no great surprise that the Trump administration is cutting funds to libraries. President Trump and his MAGA bros do not want people to read, or to think, or to ask questions, or to learn about folks different from themselves, or to develop empathy for others, or to dream of a better world — one in which all people are valued and respected — and what is necessary to achieve that. Where can all of this happen? In a library! Sandy Schuckett, Los Angeles
