NPLs

  • GACS expansion?

    UTP extension questioned

    The recent extension of the GACS guarantee scheme is expected to further fuel Italian non-performing loan securitisation issuance (SCI 5 September). However, the programme is unlikely to be expanded to cover unlikely-to-pay (UTP) loans, due to political constraints.

    Following the European Commission’s approval of the GACS extension, Scope reaffirmed its forecast of a total disposal of Italian .......

    News Analysis 21 September 2018

  • Revised NPL templates published

    Insolvency data rendered more dynamic

    The EBA last week published a revised version of its standardised non-performing loan data templates - first published in December (SCI 15 December 2017) - that aim to facilitate NPL sale transactions across the EU. The crux of the changes is a more dynamic and granular recording of insolvency proceedings in an attempt to capture their complex and .......

    News Analysis 17 September 2018

  • Increased obligations weighed

    ESMA outlines expanded reporting requirements

    ESMA last month published final draft technical standards on the new reporting requirements to be implemented under the Securitisation Regulation (SCI 24 August). The standards - released ahead of the 1 January deadline - are set to usher in new levels of due diligence required on the part of the seller, meaning investors will expect more information to .......

    News Analysis 6 September 2018

  • GACS extended

    European Commission approves guarantee extension

    The European Commission has approved a second extension of the GACS guarantee scheme for the senior tranches of Italian non-performing loan securitisations. The guarantee is issued at a market price to comply with EU state aid rules, although the European Commission will continue to review the scheme’s compatibility with market conditions. Consequently, further extensions of the scheme remain the .......

    News Analysis 5 September 2018

  • Landmark disposal completed

    Project Helix sets optimistic tone for Cypriot NPLs

    Bank of Cyprus has agreed to sell a landmark €2.7bn (GBV) real estate portfolio to Apollo dubbed Project Helix. The large size of the deal demonstrates the Cypriot market’s ability to attract large private equity funds and is expected to spur further non-performing loan transactions.

    The portfolio will be transferred to a licensed Cypriot Credit Acquiring Company (CyCAC) .......

    News 31 August 2018

  • Disposal partnership inked

    Fintech set to unlock CSEE NPL markets

    Trace Capital Advisors and Debitos have formed a partnership that could prove to be a turning point for non-performing loan deleveraging in Central, Eastern and South Eastern Europe (CSEE). The agreement aims to bring efficient and cost-effective financial technology to NPL disposals across the region. 

    According to Robert Bruckner, director and founding partner at Trace Capital: “We see .......

    News 22 August 2018

  • Market moves - 10 August

    Company developments and new hires in the structured finance sector

    CDOs transferred
    Dock Street Capital Management     has replaced Deerfield Capital Management as collateral manager of the Knollwood CDO and Mid Ocean CBO 2001-1 transactions. Moody’s has confirmed that the move will not impact its ratings on any of the notes issued by the issuers. For more CDO manager transfers, see SCI’s database.

    Effective 2 August, Highland Capital Management .......

    News 10 August 2018

  • CEE foothold extended

    AnaCap acquires its first Slovenian NPL pool

    AnaCap has acquired a corporate debt portfolio of performing and non-performing first-lien loans from Nova KBM, Slovenia’s second-largest bank. The acquisition was made via its AnaCap Credit Opportunities III fund, which targets performing, semi-performing or non-performing credit assets across Europe.

    This is the firm’s first Slovenian acquisition and further extends its foothold in the CEE region. Private equity .......

    News 10 August 2018

  • Retention questioned

    Call for NPL regulatory differentiation

    Questions are emerging over the relevance of risk retention in the context of European non-performing loan securitisations. Given its utility in transferring risk on capital-intensive portfolios, securitisation could play a greater role in resolving Europe’s troubled loan burden if there was regulatory differentiation for such assets.

    Vertical risk retention may make sense in terms of originating banks being .......

    News Analysis 7 August 2018

  • Project Glas completed

    PTSB disposal raises prospects for private dwelling house transactions

    Permanent TSB has completed the sale of Project Glas - a €2.1bn (GBV) portfolio of Irish buy-to-let properties and private dwelling houses (PDHs) - to Lone Star subsidiary Start Mortgages. The transaction is seen as a test case for further Irish non-performing loan disposals, due to its size and its inclusion of PDHs (SCI 16 February). Investors have .......

    News 7 August 2018

  • Cypriot NPL portfolio markets

    Bank of Cyprus transaction attracts global investor interest

    Bank of Cyprus is currently marketing a €5bn, by gross-book value (GBV), mixed NPL portfolio of secured and unsecured loans, dubbed Project Helix. Apollo Global Management, PIMCO, and Lone Star are looking to invest, while B2Holding is looking at co-investment and servicing opportunities.

    Sources close to the transaction note that it is among the first batch of non-performing .......

    News 27 July 2018

  • Market moves - 20 July

    A weekly breakdown of new hires and company developments in the global structured finance industry.

    Acquisition agreed

    Stone Point Capital’s Trident VII fund is set to acquire Sabal Capital Partners, with Sabal Investment Advisors, Sabal Investment Holdings and their managed funds also merged into the Sabal platform to create a vertically integrated lending, servicing and investment management platform focused on the small balance commercial real estate sector. Sabal will continue to be operated by its .......

    Market Moves 20 July 2018

  • Multi-originator GACS deal debuts

    Iccrea Banca completes landmark NPL securitisation

    Iccrea Banca, the cooperative group owned by multiple Italian mutual banks, has issued a €1bn NPL securitisation of primarily secured loans. Dubbed BCC NPLs 2018, the deal is the first multi-originator GACS securitisation, as smaller Italian banks group together to offload the risk of larger NPL portfolios (SCI 29 June).

    Rated by Moody’s and Scope, the capital structure comprises .......

    News Analysis 13 July 2018

  • Market moves - 13 July

    A weekly breakdown of recent hires and company developments in the structured finance industry.

    Acquisitions and investments

    Alantra has acquired KPMG UK’s portfolio solutions group business, which specialises in advising financial institutions in relation to non-performing and non-core banking assets globally. The team – which comprises around 70 professionals – will be renamed Alantra Corporate Portfolio Advisory and will be led by managing partners Joel Grau, Andrew Jenke and Nick Colman. Closing of the .......

    Market Moves 13 July 2018

  • NPL SPV established

    Barclays financing portfolio acquisition

    Barclays, Varde Partners and Guber Banca have acquired a €1.4bn non-performing loan portfolio originated by 53 cooperative, rural and popolari banks spread throughout Italy. The pool was purchased at 10%-13% of GBV and transferred to a securitisation vehicle dubbed Futura SPV. The transaction is believed to be the first to utilise digital due diligence.

    The portfolio comprises more than 9,000 .......

    News 12 July 2018

  • Market moves - 6 July

    Australian expansion

    Intertrust has expanded into Australia through the acquisition of Seed Outsourcing – an Australian corporate and fund services firm, providing corporate secretarial, director, domiciliation and payroll services to private equity and real estate fund managers.

    CMBS platform launched

    Principal Real Estate Investors and MUFG Union Bank have formed MUFG Principal Commercial Capital, a lending platform focused on originating .......

    Market Moves 6 July 2018

  • Landmark UTP deal completed

    Inaugural large-scale, pure UTL transaction inked

    Bain Capital Credit has acquired a portfolio of unlikely-to-pay (UTP) corporate loans, dubbed Project Valery, from the Italian arm of Credit Agricole. The portfolio has a total book value of €450m and is the first large-scale, pure UTP transaction in Italy.

    While this is not the first ever UTP portfolio acquisition, previous deals have been smaller in size and comprised .......

    News 4 July 2018

  • Multi-seller GACS deals pending

    Large portfolio sizes facilitate critical mass

    Multi-seller GACS securitisations brought by smaller Italian banks are emerging, with at least two transactions in the pipeline. However, as the transactions come to market, banks and investors will have to deal with challenges that are atypical for single-seller deals.

    During the two years that the GACS scheme has been operational, portfolio sizes (in GBV terms) have evolved towards larger .......

    News Analysis 29 June 2018

  • NPL issuance surging

    Italian lenders look to beat GACS deadline

    Banco di Sardegna has completed a €253m non-performing loan securitisation called 4Mori Sardegna, the senior notes of which are expected to be granted a GACS guarantee. The transaction features high credit enhancement levels for the senior and mezzanine notes and it is the latest in a slew of GACS issuance aiming to beat the expiration of the Italian government guarantee .......

    News Analysis 28 June 2018

  • Creval completes second NPL deal

    Credito Valtellinese (Creval) has completed a €586.35m non-performing loan securitisation with a gross book value equal to €1.67bn, as at the 31 December 2017 cut-off date. The senior notes of the deal – dubbed Aragorn NPL 2018 – are expected to benefit from the GACS guarantee.

    Rated by DBRS and Scope, the transaction comprises a €509.52m BBB (low)/BBB- senior tranche .......

    News 13 June 2018

  • Bankruptcy law brings transparency

    India’s landmark Insolvency and Bankruptcy Code (IBC) has inflicted heavy losses on the nation’s banks this year. The law has nevertheless provided more transparency in the market and has reduced non-performing loan recovery periods.

    Cumulative losses for state banks were large enough to wipe out almost all of the government's capital injections of US$13bn, while weak performance is likely to .......

    News 11 June 2018
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