NEW YORK, NY / ACCESS Newswire / October 16, 2025 / Avanza Capital Holdings CEO Comments on Dow Decline and Renewed Market Volatility Stock market today: Live updates - CNBC
Following Thursday's 300-point decline in the Dow Jones Industrial Average and sharp losses among regional banks tied to bad loans, Frank Scarso, Chief Executive Officer of Avanza Capital Holdings, said the latest market pullback underscores "the widening divide between traditional banking fragility and disciplined private credit management."
"Regional banks are again showing the structural vulnerabilities that arise when credit expansion outpaces underwriting discipline," Scarso said. "When banks are forced to stretch for yield in uncertain economic cycles, it exposes the cracks in conventional risk models and market participants see it immediately."
The Dow's reversal, led by selloffs in financial stocks such as Zions Bancorporation and Western Alliance after disclosures of loan losses and alleged borrower fraud, has reignited fears about asset quality within regional lenders. Scarso noted that while these events spook markets, they also highlight a growing shift in how capital is being deployed and managed across the financial spectrum.
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"At Avanza, we've designed our private credit structure to help insulate our lenders from these systemic inefficiencies," Scarso said. "Our model is built on collateralized, short-duration capital advance strategies where risk is quantifiable, exposure is diversified, and liquidity is mitigated. It's a deliberate contrast to the kind of balance sheet stress the public banking sector is confronting today."
He added that volatility in public markets and disruptions in credit channels often accelerate market participants migration toward alternative fixed-income vehicles that offer stability and consistent returns.
"As individuals reassess exposure to public equities and traditional bank debt, private credit continues to demonstrate strength as a high-yield, low-volatility alternative," Scarso said. "Periods like this don't just test market confidence, they actually redefine where intelligent capital goes next."
The commentary comes amid broader headwinds: ongoing trade tensions with China, a prolonged government shutdown, and rising corporate default risk. Despite these pressures, Scarso maintains that disciplined lending and data-driven underwriting in the private credit sector will remain a key stabilizing force in the U.S. economy.
"Uncertainty always reveals who's managing risk and who's merely reacting to it," Scarso said. "At Avanza, we've built a platform for accredited lenders that performs independent of political noise and market emotion. That's the real value of private credit."
About Avanza Capital Holdings
Avanza Capital Holdings is a non-traditional private credit and fixed-income firm that provides short-term, collateralized financing solutions to small and mid-sized businesses across the United States. The company offers accredited lenders risk mitigating returns with monthly liquidity and a focus on capital preservation. With a proven track record and institutional underwriting standards overseen by top tier general counsel, Avanza continues to redefine stability and opportunity in the private credit landscape.
Media Contact:
Avanza Capital Media Press Office
mediapress@avanza.nyc
Avanza Capital Holdings
212-457-1336
Avanza.nyc
Disclaimer:
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities, financial instruments, or investment advisory services. Past performance is not indicative of future results, and no guarantees of returns are made. Avanza Capital Holdings is not a registered investment advisor, Hedge fund or SEC filing and nothing in this release should be construed as financial, legal, or tax advice. Prospective lenders should conduct their own due diligence and consult with independent legal and financial professionals before participating as an accredited lending partner. The outside general counsel for Avanza Capital Holdings provides legal oversight and regulatory guidance and is not responsible for the overall activity, actions, or financial outcomes in connection with the business relationships between Avanza Capital and its respective lending partners. General counsel conducts legal services as an outside entity to and for Avanza Capital Holdings and is not directly employed by Avanza Capital and acts solely as "Outside General Counsel."
SOURCE: Avanza Capital Holdings
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/frank-scarso-%22banking-sector-strain-reinforces-the-case-for-priv-1088052
