NPLs

  • NPL secondary market impediments eyed

    The European Commission has launched a public consultation regarding initiatives to facilitate the development of a non-performing loan secondary market. Together with gathering targeted input on improving loan transfers and servicing activities, the consultation introduces a potential new instrument - dubbed the accelerated loan security - that aims to increase the protection of secured creditors from borrower defaults.

    Removing impediments .......

    News 11 July 2017

  • Attica deal unlikely to be replicated

    Greek bank Attica has announced a securitisation of €1.3bn of non-performing loans. Although rare, the transaction is unlikely to become a template for larger systemic banks, as control of servicing and the portfolio remains an issue.

    Attica will transfer €1.3bn of non-performing loans to an SPV, which will in turn issue a senior bond of a nominal value of €525.2m .......

    News 7 July 2017

  • Carige NPL deal unveiled

    Banca Carige has launched its keenly-anticipated non-performing loan securitisation (SCI 1 March). Dubbed Brisca Securitization, the €309.7m transaction is backed by an NPL portfolio with a total gross book value of €938.3m.

    The assets comprise 5,001 loans extended to 2,069 borrowers by Carige, Banca Cesare Ponti and Banca del Monte di Lucca. The collateral is primarily located in the northern .......

    News 6 July 2017

  • Atlante II role confirmed in MPS deal

    The European Commission has approved a €5.4bn precautionary recapitalisation of Monte dei Paschi di Siena under EU state aid rules, which is conditional on a five-year restructuring plan that includes the disposal of a €26.1bn non-performing loan portfolio via securitisation. Atlante II is expected to share the funding of the junior and mezzanine tranches with an undisclosed group of investors, .......

    News 5 July 2017

  • Veneto liquidation opens NPL ABS opportunities

    Veneto Banca and Banca Popolare di Vicenza will be wound down after the ECB confirmed that they are "failing or likely to fail". The Italian government is set to provide €17bn to cover losses from bad loans while handing the 'good' assets to Intesa Sanpaolo for a symbolic amount. The government's intervention and recent amendments to the Italian securitisation law .......

    News Analysis 26 June 2017

  • Data drought impedes NPL ABS growth

    Incomplete data and inadequate servicing infrastructure continues to beset the European non-performing loan market. Nevertheless, recent changes to Law 130 in Italy may help to address the growing number of 'unlikely to pay' debtors - a large, but untapped, portion of Italian banks' NPL exposures.

    Reto Bachmann, senior research analyst, global sector lead for real estate, infrastructure and structured finance .......

    News Analysis 23 June 2017

  • RBI steps up resolution efforts

    The Reserve Bank of India has announced plans to resolve the troubled loans of 12 large borrowers responsible for about 25% of the banking system's non-performing assets under India's Insolvency and Bankruptcy Code (IBC) of 2016. The move is credit positive for Indian banks, since it can help with overall asset quality - albeit large write-downs for state banks are .......

    News 21 June 2017

  • International investment boost for China

    Shorevest Capital Partners has launched a US$750m fund targeting Chinese non-performing loans. The move underscores the shift in the market's investor base from a domestic to an international one.

    "It all comes down to the NPL cycle in China, where the investible universe is growing and the infrastructure to facilitate NPL portfolio sales is attractive," says Andrew Brown, partner at .......

    News 15 June 2017

  • Bankruptcy reform opens floodgates

    India's bankruptcy law has attracted increased investment in its non-performing loan market, following reforms to the enforceability of contracts. However, concerns remain over whether associated time-bound decisions can be achieved, due to the complexity of the legal system.

    "The main issue with the Indian NPL market was the enforceability of contracts," observes Sakate Khaitan, partner at Khaitan Legal Associates.

    The .......

    News Analysis 9 June 2017

  • MPS solvency plan outlined

    Monte dei Paschi di Siena (MPS) has set out a plan to demonstrate its solvency to regulators, paving the way for a precautionary recapitalisation by year-end. The plan hinges on the lender's ability to dispose of its €30bn non-performing loan portfolio - including via a securitisation - which it was unable to achieve in December, when it was forced to .......

    News Analysis 8 June 2017

  • NPL RMBS redemptions spike

    US non-performing loan RMBS early redemption activity has hit record levels this year. US$5.3bn of bonds have been called since the beginning of 2017, compared to about US$2.4bn in 2016, according to Wells Fargo figures.

    Last month alone saw issuers calling 14 deals, amounting to almost US$2.5bn in current balance. This total easily surpassed the previous record from April, when .......

    News 8 June 2017

  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation by investors to increase. Increased investor support is identified in a recent DBRS survey as one of the most important changes required in order to grow the securitisation market, while regulatory concerns once again dominate.

    The DBRS survey was conducted before the European regulatory changes were announced last week .......

    News 6 June 2017

  • Irish central bank steps up NPL pressure

    The governor of the Central Bank of Ireland stated this week that the pace of NPL reduction in Ireland is too slow and new strategies are needed to combat the still elevated volume of bad loans. The move signifies increased political pressure on Irish banks to reduce NPL ratios.

    This is somewhat complicated by the fact that Ireland is considered .......

    News Analysis 26 May 2017

  • Investors overweight RMBS

    Investors are moving out of consumer ABS and into US non-agency RMBS, agency RMBS and cash, according to a Morgan Stanley survey. 89% of survey respondents expect to stay in line or add to their current allocation to securitised products.

    The 2Q17 global investor survey polled 30 hedge funds, 67 asset managers, 23 insurance companies, 27 banks, two pension funds .......

    News 23 May 2017

  • BoC debuts first 'restructured' NPL sale

    Bank of Cyprus, Cyprus's largest lender, has sold approximately €20m of restructured non-performing business loans to a small Cypriot bank. The transaction is the first of its kind in the Cypriot NPL market and the first under the 2015 securitisation legislation, but might not set a precedent for greater investment activity and issuance in the Cypriot NPL market.

    Local press .......

    News Analysis 22 May 2017

  • Atlante momentum waning?

    Italian bank rescue fund Atlante II has completed the purchase of its debut €2.2bn non-performing loan securitisation, clearing the way for UBI Banca's acquisition of three small rivals rescued in late 2015. The investment is believed to be one of four transactions that the fund will finalise this year.

    The NPL sale was one of the conditions imposed by UBI .......

    News 17 May 2017

  • Optionality driving RMBS focus

    The legacy US non-agency RMBS market is experiencing a 'perfect storm' of events, given the current low rate, low volatility environment. Strong performance and increasing optionality has prompted a renewed focus on the product.

    The last 12 months have been stable - with a couple of short-lived bouts of volatility around the Brexit vote and in the run-up to the .......

    News 16 May 2017

  • IFRS 9 to spur 'underperforming' loan sales

    The implementation of IFRS 9 is expected to increase provisioning for a new loan category dubbed 'underperforming loans'. As lifetime losses will have to be addressed in this category, it is likely that these assets will become non-core and therefore be subject to increased sales activity.

    According to Tony Clifford, partner at Ernst and Young, IFRS 9 will not significantly .......

    News Analysis 15 May 2017

  • Irish NPL wave expected

    Allied Irish Bank last month sold €400m gross book value of non-performing buy-to-let loans to Goldman Sachs at a 50% discount to their original value. The transaction signals a shift in the seller base for non-performing loans from foreign banks and bad bank NAMA to domestic Irish lenders.

    According to Tom McAleese, md at Alvarez and Marsal, between 2011 and .......

    News Analysis 3 May 2017

  • Chinese NPL ABS to expand

    The Chinese government is set to allow some mid-sized banks to issue non-performing loan ABS this year, providing them with a new channel to offload bad loans. The move is part of an attempt to establish a risk curve, which aims to increase the alternatives available in the credit market.

    Efforts to use securitisation as one of the means to .......

    News 2 May 2017

  • Cypriot securitisation bill pending

    A new Cypriot securitisation framework is currently pending parliamentary approval. The bill is expected to address the restricted scope of eligible investors in the country's non-performing loan market.

    Current Cypriot securitisation legislation - the 'Purchase and Sale of Credit Facilities and Relevant Matters Law of 2015' - is "restricted in both scope and application", according to Thomas Keane, partner at .......

    News 27 April 2017
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