NPLs

  • 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

  • European hot spots highlighted

    CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Drivers include a broadening of the investor base for the former and continued bank deleveraging for the latter.

    AFME data for 1Q17 shows that pan-European CLOs led placed European securitisation issuance, followed by UK RMBS and Dutch RMBS. Volumes across these sectors totalled .......

    Talking Point 24 April 2017

  • Chinese NPL ABS growing in size and diversity

    The Chinese non-performing loan securitisation sector is set to grow, adding to the existing RMB16.33bn worth of transactions since the market opened in May 2016, according to Moody's. The agency notes that transactions with a mixture of unsecured and secured NPLs are emerging, with deals backed by unsecured loans having weaker credit quality and pricing at a bigger discount than .......

    News 13 April 2017

  • Irish NPL RMBS 'could start wave'

    Lone Star is back in the market with another Irish RMBS. It is currently marketing European Residential Loan Securitisation 2017-NPL1, which securitises non-performing loans.

    Lone Star priced an Irish non-conforming RMBS, European Residential Loan Securitisation 2017-PL1, last month (see SCI's new issue database). For its latest transaction, the private equity house is offering the senior three tranches, making .......

    News 6 April 2017

  • China tipped as next NPL frontier

    Distressed debt investors are becoming more active in the Chinese non-performing loan market. Recent government action - including the creation of a more transparent and effective legal system - is widening the scope of opportunities in the sector.

    Andrew Brown, partner at Shorevest, notes that the key difference between China and other jurisdictions is the government's control over the economy, .......

    News Analysis 6 April 2017

  • Portuguese NPL prospects boosted

    Lone Star is set to acquire 75% of Novo Banco, Portugal's third largest lender, in return for a €1bn capital injection. The acquisition, along with the mooted creation of a bad bank, signals growing investor activity in the Portuguese non-performing loan market.

    Under the agreement, the resolution fund (a public body financed by all Portuguese banks) will inject capital into .......

    News Analysis 3 April 2017

  • Value seen in jumbo 2.0 and RPL deals

    US non-agency issuance volumes are inching up on the back of the housing market recovery. Re-performing (RPL) and post-crisis prime jumbo RMBS, in particular, are tipped as offering value in the current environment.

    Jason Merrill, structured specialist at Penn Mutual Asset Management, says that non-agency legacy RMBS issuance is very tight, without the ratings to support it. This has prompted .......

    News Analysis 31 March 2017

  • Legislation, growth drive Cyprus turnaround

    Cyprus's non-performing exposures (NPE) ratio has experienced significant improvements, given stronger GDP growth and the adoption of an insolvency framework. At the same time, servicing is becoming an increasingly viable option for the restructuring of delinquent loans.

    According to Adriana Alvarado, vp at DBRS: "The steady recovery of the economy, which posted growth for a second consecutive year in 2016, .......

    News Analysis 31 March 2017

  • Irish RMBS recaptures attention

    The recent resurgence in primary issuance is not the only way to tap Irish RMBS value, as further redemptions for a number of Celtic Residential Irish Mortgage Securitisation series transactions could also provide value in the secondary market. JPMorgan analysts believe indicative pricing levels for CRSM 9 A2 and CRSM 11 A3A could yield a sizable spread pickup relative to .......

    News 21 March 2017

  • Greek servicing shift underway?

    Piraeus Bank has hired Christos Megalou, a former Eurobank director, as its chief executive. The appointment signals a growing shift in Greek banks' NPL strategies towards the outsourcing of servicing needs to external servicers.

    "The market believes that [Megalou] can turn the bank around by dealing with the non-performing loans," says George Kofinakos, md at StormHarbour in London.

    Megalou took .......

    News Analysis 15 March 2017

  • European AMC to create 'positive feedback loop'

    Further details have emerged about the EBA's proposed state-funded, pan-EU asset management company (AMC) (SCI 3 February). The initiative is expected to attract more investors to the European NPL market and by extension free up bank capital and spur more lending.

    "The reduction of NPL ratios is a positive sign, but it is too slow," says Mario Quagliariello, head of .......

    News Analysis 14 March 2017

  • Innovative GARC transaction prints

    Intesa Sanpaolo has printed an innovative risk transfer transaction - and the largest to date - from its GARC programme, with Banca IMI acting as arranger. The €2.5bn GARC SME-5 synthetic securitisation references a granular portfolio of Italian SME loans.

    According to Elisabetta Bernardini, head of credit portfolio management at Intesa Sanpaolo: "This was an innovative structure, since it was completed .......

    News 14 March 2017

  • German shipping loss provisions on the rise

    Loss provisions against non-performing shipping loans by German banks are on the rise, due to the slowdown in the shipping industry. At the same time, a number of large German lenders are seeking to reduce their exposure to the sector.

    Commerzbank and Deutsche Bank last month announced increased loan loss provisions for shipping to €900m and €346m respectively in 2016 .......

    News 2 March 2017

  • Carige NPL strategy unveiled

    The Banca Carige board of directors yesterday unanimously approved an updated strategic plan, under which the bank is targeting an ROE of 7.4% and CET1 ratio of 14.1% by 2020. A critical part of the plan is to reduce the share of non-performing loans on its books to 13.1%, in line with the ECB's target, which the bank hopes to .......

    News 1 March 2017

  • German NPL sales to accelerate

    Germany's positive economic outlook and the loans' relatively low cost of capital have historically meant that German banks are under less pressure to dispose of non-core assets in any significant volume. However, the introduction of IFRS 9 is expected to accelerate NPL sales in the country (and other European jurisdictions) over the coming 12-24 months.

    Although consumer lending and default .......

    News Analysis 27 February 2017

  • CMBS liquidation trust prepped

    An innovative liquidation vehicle backed mainly by commercial real estate loans is marketing. Dubbed VSD 2017-PLT1, the securitisation has an aggregate unpaid principal balance of US$378.1m and monetises recoveries from performing, non-performing and REO assets to pay the notes.

    Interest payments can be deferred by up to one year, if there are insufficient funds to make the payment, while principal .......

    News 24 February 2017

  • Italian mixed NPL portfolio added

    AnaCap Financial Partners is set to acquire a €177m portfolio of Italian performing and non-performing corporate secured loans from Barclays. The transaction is the latest in a flurry of Italian mixed portfolio acquisitions through which the private equity firm has developed valuation expertise.

    AnaCap targets mixed portfolios of primarily consumer and SME debt across Europe, including performing, semi-performing and non-performing .......

    News Analysis 17 February 2017

  • Shift in NPL asset mix anticipated

    Loan disposals totalling €103.3bn were completed in Europe last year, with the number of ongoing transactions at end-2016 representing €69.5bn across 56 deals, according to Deloitte's latest 'Deleveraging Europe' publication. The firm expects the deal rate to rise in 2017, as new markets open up and the asset mix shifts to more performing, sub-performing and complex portfolio structures.

    More complex .......

    News 16 February 2017

  • Leveraging NPL disposals

    UniCredit is expected to use leverage in its planned €17.7bn NPL securitisation, dubbed Project Fino, in an attempt to bridge the bid/ask gap on the asset valuations with investors PIMCO and Fortress (SCI 14 December 2016). The first phase of the transaction - in which it will sell at least a 20% vertical tranche of the portfolio - will be .......

    News Analysis 9 February 2017

  • Boosting liquidity

    First post-crisis Irish NPL RMBS profiled

    Lone Star's Irish non-conforming RMBS, which it privately-placed in November (SCI 29 November 2016), was notable for its mixed pool of performing and non-performing mortgages. The €536.5m European Residential Loan Securitisation 2016-1 - Ireland's first post-crisis NPL RMBS - is expected to pave the way for further such mixed-pool issuances.

    The collateral comprises a rare mix of performing (accounting for .......

    News Analysis 3 February 2017

  • Bridging the gap

    Neutralising NPL valuation discrepancies addressed

    Achieving valuations that satisfy both sellers and investors has been a major sticking point in many recent European non-performing loan transactions. This has been most notable in Italy, where the wide bid/ask gap has hindered sales of NPLs to SPVs for securitisation purposes. The EBA's latest proposals seek to address this valuation discrepancy by purchasing the loans from banks at .......

    News Analysis 3 February 2017
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