NPLs

  • 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

  • Market moves - 8 June

    Acquisition

    Angel Oak Commercial Lending (AOCL) has acquired a controlling interest in Cherrywood Mortgage – a national, small-balance commercial mortgage lender based in Los Angeles, California. Cherrywood will serve as the wholesale small-balance commercial lending arm of (AOCL) and is led by ceo Bill Komperda and president Ed Resendez.

    Cat bond first

    SCOR has sponsored a new cat bond, dubbed Atlas .......

    Market Moves 8 June 2018

  • UTP loans raise AI prospects

    Resolving unlikely to pay (UTP) loans is becoming more important for Italian banks, but the challenges involved can be particularly complex. As a result, special servicers are looking to create proprietary servicing platforms that utilise machine learning and artificial intelligence.

    Servicers have collected extensive information on borrower performance and credit data which they are using to an increasing degree to .......

    News 7 June 2018

  • Deal 'will happen' despite political risk

    Banco BPM has announced the transferral of a €5.1bn gross nominal value (GNV) portfolio of NPLs to the Red Sea SPV, as part of Project Exodus (SCI June 1). The Italian bank aims to sell the junior and mezzanine notes, although political uncertainty may lead to higher premiums, putting a strain on the transaction.

    Banco BPM will apply for the .......

    News Analysis 6 June 2018

  • Euro mortgage market heating up

    A thriving European mortgage market is attracting foreign investors seeking to capitalise on the low-risk returns on offer, particularly in the UK and the Netherlands. New firms such as Fortrum (SCI 18 May) are being established, offering innovative products and services to help smooth the path for those venturing into the European structured finance sector.

    Simon Collingridge, co-founder of Fortrum, .......

    Provider Profile 1 June 2018

  • Market moves - 1 June

    BTL RMBS planned
    UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool of approximately £350m buy-to-let non-member mortgages originated by The Coventry Building Society Group through its Godiva brand. The portfolio comprises 2,077 recently-originated loans with an average balance of approximately £169,000 and an average LTV of 60.8%. The loans have approximately five years until the current fixed rate .......

    Market Moves 1 June 2018

  • GACS issuance surge expected

    Investor appetite for GACS non-performing loan securitisations will be tested this year, as a strong pipeline of deals come to market before the government guarantee expires in September. Should the guarantee fail to be extended, more outright sales of NPLs are expected rather than securitisations.

    “Only three GACS NPL securitisations where completed before the first GACS law decree expired in .......

    News Analysis 29 May 2018

  • NPL financing hurdle highlighted

    Financing non-performing loan resolutions remains the missing piece in efforts to tackle Europe’s troubled asset burden. While securitisation can help close the NPL bid/ask gap and broaden the investor base, the technology typically isn’t appropriate for volatile or deeply impaired assets.

    There is currently no preferred transfer model for NPLs, nor discussion around different NPL asset classes at .......

    News Analysis 25 May 2018

  • Landmark NPL securitisation closed

    Banca Monte dei Paschi di Siena’s landmark non-performing loan securitisation, Siena NPL 2018, features several structural innovations that are expected to be replicated in future NPL securitisations. The €4.33bn transaction securitises exposures equivalent to a gross book value of around €24.07bn (SCI 11 May).

    One structural innovation is that the transaction provides for a real estate operating company (ReoCo) to .......

    News Analysis 25 May 2018

  • NPL servicing still needs strengthening

    Inadequate servicing capability for non-performing loans - largely in Italy and Greece - is hampering securitisation activity and stemming investor inflows, according to panellists at SCI’s recent NPL securitisation event. Nevertheless, improvements are gradually being made to bolster servicing infrastructure, supported by regulatory changes and European Council proposals.

    Zach Lewy, founder and co-cio at Arrow Global, suggested that .......

    News Analysis 18 May 2018

  • Market moves - 18 May

    Europe

    CIFC has hired Joshua Hughes as head of European marketing, based out of London and reporting to co-ceo, Oliver Wriedt. Hughes was previously head of global distribution at Muzinich & Co. He will lead the firm’s fundraising efforts in the UK and throughout Europe as the firm establishes its European platform.

    Simon Collingridge and Tony Ward of Home Funding Limited and Jaap .......

    Market Moves 18 May 2018

  • Split-mortgage securitisation mulled

    Permanent TSB has pulled €900m of split mortgages from its Project Glas portfolio sale of approximately €4bn of distressed Irish mortgages. The need to maintain borrower relationships and regulatory challenges over the treatment of split mortgages raise the prospect of the securitisation route for these loans.

    Following the withdrawal of the mortgages from the portfolio, Project Glas now .......

    News Analysis 18 May 2018

  • Securitisation 'right tool' for NPL disposals

    Participants at a recent SCI seminar on non-performing loan securitisation were optimistic about the role of ABS in facilitating disposals of troubled loans across Europe, with or without government guarantees. Concerns persist, however, that work still needs to be done in several jurisdictions in terms of professionalising servicing capabilities and standardising securitisation procedures.

    Iain Balkwill, partner at Reed Smith, commented: .......

    Talking Point 18 May 2018

  • BMPS deal taps ReoCo

    Banca Monte dei Paschi di Siena (BMPS) has completed its much-anticipated non-performing loan securitisation (SCI passim). Dubbed Siena NPL 2018, the €4.33bn transaction securitises exposures equivalent to a gross book value of around €24.07bn and envisages the involvement of a real estate operating company (ReoCo).

    Rated by DBRS, Moody’s and Scope, the deal comprises €2.92bn BBB/A3/BBB+ rated class .......

    News 11 May 2018

  • NPL recovery boost expected

    Greek systemic banks are teaming up to create a platform that will manage and settle mortgage and retail non-performing loans to borrowers who have filed for protection under a much-abused law providing favourable restructuring terms (SCI 8 December 2016). Greek lenders have used this procedure for corporate loans, but not for mortgages, consumer and SME loans.

    The arrangement .......

    News Analysis 4 May 2018

  • Market moves - 27 April

    Australia

    FIIG Securities has hired Anne-Marie Hunter-Brown to the role of markets business manager, Australia. She was previously at Deutsche Bank as IB markets coo and business manager across global credit including structured credit.

    Assured Guaranty rebuttal

    Hedge fund manager David Einhorn recently stated that he is betting on Assured Guaranty’s stock falling, and that it .......

    Market Moves 27 April 2018

  • ECB encourages action on NPLs

    Gifford West, md, international operations and business deve...

    At a recent NPL industry event, a banker credited with completing some of the largest European NPL sales observed: “The Irish and UK banks were distressed sellers. Now their banks are on the path to recovery. The Italian banks refused to be distressed sellers. Now they are mostly distressed banks.”

    The ECB’s guidance published on 15 March 2018 is .......

    Talking Point 26 April 2018

  • NPL partnership inked

    Intesa Sanpaolo and Intrum have agreed to form a strategic partnership in respect of non-performing loans. The agreement involves two transactions, including what is expected to be a landmark securitisation for the Italian market.

    Under the partnership, the Italian NPL platforms of Intesa Sanpaolo and Intrum will be integrated to create a servicer with around €40bn of assets .......

    News 18 April 2018

  • Swiss mortgage portfolio sale eyed

    BNP Paribas last week acquired Raiffeisen Bank Polska (Polbank), the Polish subsidiary of Raiffeisen Bank International (RBI), but carved out from the acquisition a portfolio of mainly Swiss franc-denominated foreign currency residential mortgages. The €3.5bn portfolio derailed earlier attempts by RBI to either sell or IPO Polbank, so Polish financial regulator KNF finally rejected the transfer of the portfolio, .......

    News Analysis 18 April 2018

  • Italian NPL securitisations outpace loan sales

    Non-performing loan securitisation volume has outpaced outright sales in Italy, as banks seek to benefit from the GACS guarantee scheme. The trend is expected to continue this year, thanks to a strong track record over the last 12 months and an investment shift towards Southern Europe.

    Italian NPL transaction volume last year totalled €32.67bn across 33 deals (up from €12.54bn .......

    News Analysis 12 April 2018

  • Provisioning impact muted

    The ECB and European Commission have both put forward new rules for minimum loss coverage, which are a step towards improving provisioning practices across Europe and avoiding future unreserved non-performing loan build up. Although having two different sets of rules may create regulatory uncertainty across the banking sector, the impact for NPL securitisation seems muted.

    “The rules deal .......

    News Analysis 11 April 2018
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