As a long-time observer and amateur practitioner of the game, we enjoy the season when tennis arrives at the hallowed grounds of Wimbledon. It also reminds us how capital markets, like the stately British stadium, evolve beyond decades of tradition into more sophisticated and timely versions.

There’s the stark contrast between players, accustomed to hard courts, clay or other artificial surfaces, working their craft on the green sward. Only 5% of professional tennis tournaments worldwide are held on grass, making it a living fossil. In 2001 Wimbledon changed to a 100% perennial rye variety for a firmer surface. This gave clay-courters more of a chance.

Nevertheless, no one is building new grass courts. In this way the world of tennis is like banking. Since the early 1970’s (when three of the four majors were in grass), banks have left their market share to direct lenders. About 5% of US leveraged loans are now held by banks.