NPLs

  • Project Cairo prepped

    Eurobank applies for HAPS guarantee

    Eurobank has applied to the Greek government for a senior tranche guarantee under the Hercules Asset Protection Scheme (HAPS). The guarantee is sized at €1.65bn and concerns two non-performing loan securitisations dubbed Cairo One and Two. Further applications are expected following a series of announcements of pending HAPS NPL ABS deals by Greek systemic banks (SCI 4 February).

    News 26 February 2020

  • Distressed debt unit formed

    Oaktree establishes Chinese subsidiary

    Oaktree Capital Management has become the first foreign distressed debt manager to set up a wholly owned subsidiary in China as part of phase one of the US-China trade deal. The trade deal will allow US firms to apply for asset management company (AMC) licenses and hence purchase non-performing loans directly from Chinese banks.

    At the moment, foreign .......

    News 19 February 2020

  • ArrowMark acquires investment platform

    Sector developments and company hires

    Acquisition
    ArrowMark Partners     has acquired the bank investment platform and assets of StoneCastle Asset Management. As a closing condition of the transaction, stockholders approved a new investment management agreement between the company and StoneCastle-ArrowMark Asset Management - a subsidiary of ArrowMark - and elected eight directors, constituting its board. Sanjai Bhonsle has been elected as the company’s ceo and chairman.  .......

    Market Moves 14 February 2020

  • Positive outlook

    Spanish REO boost expected

    The outlook for Spanish non-performing loan transactions backed by repossessed real estate appears positive for this year, thanks to new mortgage regulations that reduce bank litigation risk. However, the illiquidity of the asset class remains a challenge that can hinder recoveries and delay the foreclosure process.

    Spain’s Supreme Court ruled last year that Spanish banks are obliged to .......

    News Analysis 14 February 2020

  • Futura placed

    European ABS market update

    JPMorgan has placed the re-offered Futura 2019 NPL ABS at a wider print than some market participants had been expecting. The transaction is notable for not benefitting from the Italian GACS guarantee and was retained by the sponsor Guber Banca in December (SCI 17 December 2019).

    The senior tranche of the deal priced at six-month Euribor plus .......

    Market Reports 14 February 2020

  • Italian private market JV inked

    Sector developments and company hires

    EMEA
    Oxane Partners has appointed Andrew Tisdall as director, portfolio management solutions. Tisdall will report to Sumit Gupta, co-founder of Oxane, and will focus on expanding the firm’s portfolio management business in Europe. Tisdall has more than 22 years of experience in loan operations at Mount Street, Morgan Stanley and Barclays. He joins Oxane from Mount Street, where he was .......

    Market Moves 13 February 2020

  • HAPS flurry

    Greek NPL ABS pipeline grows

    Piraeus Bank is set to securitise €7bn of non-performing loans in 2020. The lender is the latest to announce its intention to take advantage of Greece’s recently approved Hercules asset protection scheme (HAPS).

    According to Piraeus: “The Hellenic Asset Protection Scheme ‘Hercules’ is a tool that will provide additional support to Greek banks to speed up our de-risking .......

    News 4 February 2020

  • NPL ABS settled

    Multi-originator trend continues

    Twelve Italian popular banks - including Banca Popolare di Puglia e Basilicata and Banca di Credito Popolare - have settled a securitisation backed by an €826.7m GBV portfolio of secured and unsecured non-performing loans. The ABS continues a trend of multi-originator transactions that began over a year ago in the Italian NPL market (SCI 13 July 2018).     

    News 23 January 2020

  • CLO losses expected after Constellis default

    Sector developments and company hires

    Constellis losses expected
    Moody’s warns that, at current prices, Constellis Holdings’ limited default could result in significant losses - realised or unrealised - for some CLOs. Over 200 CLOs the agency rates hold about US$600m of the firm’s debt, including 20 deals that have exposure of over 1% and are expected to report an average par loss of 88bp. Three of .......

    Market Moves 10 January 2020

  • NPL boost?

    Hoist Finance acquires landmark French portfolio

    Hoist Finance has acquired a French non-performing mortgage portfolio with more than 3,500 claims and an outstanding balance of approximately €375m. This is the largest-ever portfolio investment for Hoist Finance into a relatively untapped NPL jurisdiction with positive prospects.

    According to Stephan Ohlmeyer, cio at Hoist Finance: “Two years ago, we set up a servicing platform for secured NPLs from .......

    News 19 December 2019

  • NPL ABS pair inked

    Guber, UBI Banca hit the market

    A pair of Italian non-performing loan securitisations – dubbed Futura 2019 and Iseo SPV – have closed. The former is notable for being only the second Italian NPL ABS to not benefit from a GACS guarantee, following the issuance of Belvedere SPV in December 2018.

    Futura 2019 is the first issuance sponsored by Guber Banca and securitises assets with a .......

    News 17 December 2019

  • Riding the wave

    NBG offloads secured NPL exposures

    The National Bank of Greece has completed its first secured non-performing loan transaction. Dubbed Project Symbol, the €900m portfolio is riding a wave of secured NPL transactions in Greece.

    The portfolio references 12,800 borrowers and is backed by a variety of collateral types, including land, industrials, residential and commercial real estate. Bidding as a percentage of the portfolio totalled 28%. .......

    News 13 December 2019

  • CET1 ratios eyed

    Disposals, securitisations to protect bank capital

    European bank CET1 ratios have stabilised over recent years, as Basel 3 capital requirements and other supervisory measures have been fully phased in. However, further RWA inflation could result from the ECB’s TRIM exercise or the Basel 4 output floors.

    Banks have adapted to the post-crisis regulatory environment by lowering RWAs and/or by retaining more earnings. Indeed, for over a .......

    News Analysis 12 December 2019

  • Hercules tapped

    Alpha Bank preps NPL securitisation

    Alpha Bank is set to securitise a €12bn mixed portfolio of retail secured and unsecured loans, mortgage and wholesale non-performing loans in 1H20. Dubbed Project Galaxy, the transaction protects shareholders from dilution and is one of the first to utilise the Greek government’s Hercules asset protection scheme (HAPS) (SCI 11 October).

    Alpha Bank’s main priority is to .......

    News 20 November 2019

  • ERLS returns

    Lone Star prints Irish NPL RMBS

    Lone Star has priced its latest Irish non-performing loan RMBS at the same levels as its previous ERLS deal from July. Dubbed European Residential Loan Securitisation 2019-NPL2, the deal is backed by mortgages from the €1.34bn Project Glas portfolio acquired from Permanent TSB in 2018.

    Rated by DBRS and Moody’s, the transaction consists of A/A2 rated class A .......

    News 15 November 2019

  • Performance tracked

    Peripheral NPL ABS compared

    JPMorgan has launched respective performance trackers for Italian and Iberian non-performing loan securitisations, summarising high-level transaction details and dynamic performance metrics. The data highlights a number of notable differences between the two sectors.

    First, original deal size as a percentage of total GBV securitised averages 33% for Iberian NPL ABS, compared to an average of around 28% for .......

    News 12 November 2019

  • Liquidation challenges

    Greek economy precludes enforcement option

    An improvement in economic fundamentals and reform efforts has boosted both the deal flow and prospects of the Greek non-performing loan market. However, recovery prospects on Greek NPLs remain low, mainly because debtors are in negative equity. Consequently, investors will likely focus on restructurings rather than collateral liquidations going forward.         

    According to Antonio Casado, executive director at .......

    News Analysis 8 November 2019

  • Rollover prepped

    NPL CRT to be refinanced

    Hoist Finance is readying a rated securitisation backed by Italian unsecured non-performing loans with a gross book value of €5bn, as of end-September. The capital relief trade is the firm’s first public securitisation of NPLs consisting solely of unsecured consumer and SME loans and follows an unrated NPL securitisation that was completed in August (SCI 1 August).    

    The .......

    News Analysis 7 November 2019

  • Cautious optimism

    NPL ABS opinion welcomed, although challenges remain

    The EBA’s recent opinion on non-performing loan securitisations (SCI 24 October) has been welcomed by market participants, given that it represents recognition by the authority that existing rules lead to punitive capital charges for NPL securitisation positions. Nevertheless, its impact will depend on the legal regimes of EU countries and the effect of the new Securitisation Regulation’s tough .......

    News Analysis 1 November 2019

  • GARC deal expected

    Sector developments and company hires

    EMEA
    Florent Trouiller has joined Norton Rose Fulbright as a partner in its Luxembourg office. Trouiller practises tax law, with a particular focus on cross-border private equity and real estate investments and securitisation transactions. He was previously a partner at Dechert and before that spent 10 years at Allen & Overy in Luxembourg.

    GARC deal expected
    Intesa Sanpaolo has acquired .......

    Market Moves 31 October 2019

  • GACS structured

    Mortgage NPL ABS prepped

    UniCredit is in the market with a non-performing loan securitisation that references €6bn - in gross book value terms - of secured and unsecured residential mortgages. Dubbed Prisma SPV, the transaction is an unusual NPL ABS, given the underlying assets and is the first transaction to be completed following the most recent renewal of GACS.

    Rated by Moody’s and Scope, .......

    News 23 October 2019
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