NPLs

  • 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

  • Positive outlook

    Italian non-performing lease ABS on the cards

    Italian non-performing lease securitisation volumes could reach €2bn next year, as investors seek new opportunities, following a slowdown in non-performing loan ABS issuance. However, a number of challenges remain (SCI 24 May).

    Several factors have improved the outlook for non-performing lease securitisations. First, there is a large stock of available assets.

    According to Scope Ratings, while .......

    News Analysis 21 October 2019

  • Hercules sets forth

    Greek asset protection scheme approved

    The European Commission has announced that the Greek government’s asset protection scheme - dubbed Hercules - complies with state aid rules, thereby paving the way for its implementation. Although the non-performing loan ABS scheme is expected to raise issuance volumes and facilitate the de-risking of bank balance sheets, the Greek market needs time to ramp up its servicing capacity.

    News Analysis 11 October 2019

  • Autumn sales

    Italian NPL, UTP disposals continue apace

    Illimity Bank and a Cerberus Capital Management affiliate have acquired a second unlikely-to-pay loan portfolio from Banca Monte Paschi di Siena (MPS), following a previous MPS transaction with Cerberus (SCI 2 August). Separately, UniCredit has disclosed a pair of non-performing loan transactions.

    In the latest MPS transaction, the Cerberus affiliate provided the equity tranche, while illimity provided .......

    News 2 October 2019

  • Investor reassurance

    Spanish Supreme Court ruling assuages NPL ABS investor concerns

    Spain’s Supreme Court has ruled that Spanish banks are obliged to wait until at least 12 monthly instalments are missed before initiating foreclosure proceedings on consumer mortgage contracts. The ruling should reassure investors in non-performing loan (NPL) securitisations by allowing lenders to foreclose on troubled home loans.

    The guidance concerns procedures which have been lingering after early-termination clauses were declared .......

    News Analysis 20 September 2019

  • Case for STS synthetics outlined

    Benefits of STS on synthetics clear, but objections could be raised

    The EBA is set to release its discussion paper on the application of the STS label to synthetic securitisation next week, with a view to publishing a proposal by the middle of next year.  While the paper is a “step in the right direction”, the market will not see any synthetic securitisations with the STS label for “quite some .......

    News Analysis 20 September 2019

  • Targeting opportunities

    Servicers continue hunt for Greek NPL ABS

    Hipoges Iberia, the Iberian servicer, is targeting opportunities in the Greek non-performing loan market that include NPL securitisations. Servicers are targeting Greek NPL ABS deals (SCI 31 May) amid actual and pending completions of NPL ABS transactions, as well as the European Commission’s pending approval of a government-backed NPL securitisation programme (SCI 12 October 2018).

    The .......

    News Analysis 13 September 2019

  • Going concern?

    Synthetics could help address UTP burden

    Synthetic securitisation is being put forward as one way of proactively addressing the unlikely-to-pay loan burden in Italy. However, although risk transfer technology would allow banks to maintain their relationships with borrowers while benefiting from capital relief, the cost of such structures – among other challenges – may be prohibitive for some.

    Robert Bradbury, head of structuring and .......

    News Analysis 5 September 2019

  • NPL relief

    ECB extends provisioning calendar

    The ECB is set to align its supervisory expectations regarding the provisioning of new non-performing loans with an April 2019 amendment to the CRR that outlines Pillar 1 requirements for the assets. The alignment offers banks more time to provision for recently classified NPLs, but is expected to have a minimal impact on NPL securitisations, given that the bulk .......

    News Analysis 30 August 2019

  • Deleveraging boost

    Monte dei Paschi completes NPL disposals

    Banca Monte dei Paschi di Siena has sold a further four non-performing loan portfolios for approximately €340m (SCI 14 August). The transactions add to the recently finalised deals with Illimity Bank and Cerberus Capital Management, bringing the bank’s total sold NPL exposures since end-July to almost €1.5bn.

    The latest deals involve the sale of €137m secured and .......

    News 21 August 2019

  • Pricing tension

    Houlihan Lokey model leveraged in shipping deal

    Nord LB completed a landmark €2.6bn shipping non-performing loan deal with Cerberus in April that utilised Houlihan Lokey’s proprietary pricing model. The model aids pricing tension and helps keep traditional distressed investors disciplined.     

    According to Zam Khan, md at Houlihan Lokey: “We included lower cost of capital end-investors - such as sovereign wealth funds - from the .......

    News 16 August 2019

  • NPL disposals sealed

    Two banks offload Italian loan portfolios

    Two disposals of Italian non-performing and performing loans (NPLs) originated by Unicredit and ING have been sealed. The first transaction comprises a portfolio of unsecured SME NPLs while the second, from ING, comprises performing and non-performing real estate leasing positions.

    ING’s disposal was valued at €1.6bn by gross book value, consists of 4,000 performing and non-performing real estate .......

    News 8 August 2019

  • JV agreed

    Intesa readies UTP securitisation

    Intesa San Paolo has reached an agreement with Prelios that involves the securitisation of a €3bn (GBV) corporate and SME unlikely-to-pay portfolio. The deal follows a similar NPL agreement with Intrum that was finalised last year and is part of a wider joint venture trend (SCI 14 December 2018).

    The agreement consists of a 10-year contract for .......

    News 7 August 2019

  • NPL SRT inked

    Hoist Finance tackles backstop regulation

    Hoist Finance has sold a €225m portfolio of Italian unsecured non-performing loans via an unrated securitisation to a fund managed by CarVal Investors. The significant risk transfer transaction is mainly carried out for capital relief purposes and will be followed by future NPL ABS deals.

    The SPV will fund 95% of the net purchase price of the receivables .......

    News Analysis 1 August 2019

  • Italian renaissance?

    Spike in new issuance supported for now

    The uptick in Italian ABS/MBS primary issuance in the past month or so gives the impression of a long-awaited re-start to the market. However, while there are a range of factors supporting the trend, old concerns remain.   

    Despite the flurry of deals recently, the total volume of Italian securitisations this year to date is actually slightly down .......

    News Analysis 24 July 2019

  • First-mover disadvantage

    NPL ABS downgrade structurally specific

    Scope Ratings has downgraded Elrond NPL 2017 after a performance review. The move appears to be a deal-specific one, as most European non-performing loan ABS deals are performing as expected.

    David Bergman, md and head of structured finance at Scope Ratings, explains: “Elrond has been consistently below expectations in terms of timing for the collections and that is .......

    News 23 July 2019

  • Novel approach

    UTPs drive ReoCo rethink

    Investors and servicers in the Italian non-performing loan market are targeting a new approach to ReoCos as they eye the coming unlikely-to-pay (UTP) wave. Such an approach requires capabilities whose development remains a work in progress, however.

    ReoCos are SPVs that have typically been used in the Italian market to buy and auction real estate collateral. However, servicers .......

    News Analysis 11 July 2019

  • New deals surge

    Quarterly SCI data update

    2Q19 saw a surge in new issuance volume across securitisation markets either side of the Atlantic. The second quarter typically sees an uptick over the previous quarter (SCI 11 April 2019), but this year's boost in European volumes was a reflection of greater regulatory certainty as the new STS rules bedded in and pent-up supply met pent-up demand.

    .......

    News Analysis 10 July 2019

  • Spanish exposure

    Rare NPL RMBS prepped

    Rarely seen Spanish assets are behind the latest non-performing loan RMBS currently marketing. At the same time, price talk is out on the latest Irish NPL RMBS.

    The dual-tranche Spanish deal, dubbed ProSil Acquisition, is backed by a €494.7m by gross book value (GBV) portfolio consisting of mostly secured non-performing loans and some residual unsecured loans. The receivables were originated .......

    News 10 July 2019

  • Latest podcast now live!

    Mascots, Japanese CLO investors and STS struggles

    In this month's edition of the SCI podcast, the editorial team get stuck into some interesting topics affecting the securitisation market today. First, our editor, Corinne Smith discusses some recent structural innovations in US CLOs, including MASCOTs - or modifiable and splitable/combinable tranches - and the benefits these offer investors.

    Next up, Stelios Papadopoulos, senior reporter, looks at some of the .......

    News 1 July 2019

  • Wholesale switch

    Creval eyes NPL reduction strategy

    Credito Valtellinese (Creval) has announced a five-year business plan that aims to reduce its non-performing loan and sovereign exposures and improve profitability via cost-cutting. The successful execution of the plan would make the bank more attractive for a possible merger in the future, in line with supervisory calls for reductions in NPL exposures as well as consolidation, in order to .......

    News 28 June 2019
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