NPLs

  • 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

  • Surprise delinquency dip

    The Trepp US CMBS delinquency rate fell modestly in January to 5.18%, a drop of 5bp from December. The rate is now 86bp higher than the year-ago level.

    Trepp notes that last month's dip comes as a bit of a surprise, given the volume of loans from the 2007 vintage coming due this year. "We will now watch to see .......

    News Round-up 1 February 2017

  • Repurchase plan

    Italian bridge banks complete resolution process

    Nuova Banca delle Marche has completed the NPL repurchases from its securitisations in accordance with the Italian state's resolution plan. The €74.3m sale proceeds from this latest repurchase will be used to repay the Marche Mutui 4 RMBS notes on the next interest payment date in February.

    Four small lenders were placed under special administration with the Bank of Italy, .......

    News Analysis 31 January 2017

  • Aligned interests

    US funds continue Spanish NPL storm

    US funds continue to storm the Spanish NPL market for investment opportunities. They appear to be capitalising on funding structures and operational processes that match the asset characteristics of the large non-core disposal programmes seen in the country.

    NPL transaction volumes in Spain reached €23bn in 2016, up from €16bn in 2015, €21bn in 2014 and €6bn in 2013, according .......

    News Analysis 24 January 2017

  • WestLB spin-off acquired

    Mount Street is set to acquire EAA Portfolio Advisors (EPA) from Erste Abwicklungsanstalt (EAA), which was created at end-2009 under the German Financial Market Stabilisation Fund Act to manage the assets of WestLB. The €200bn portfolio comprised a diverse range of complex non-performing loan, ABS, leveraged credit, asset finance and structured finance assets.

    EPA has reduced the outstanding balance of .......

    Job Swaps 23 January 2017

  • CRE lawyer promoted

    Sutherland has elected three new partners and nine new counsel to the firm. One of the new counsel - Brooke Parris - has securitisation expertise.

    Based in Atlanta, Parris represents lenders, servicers, developers and pension fund advisers in various aspects of real estate finance and development. She devotes significant time advising clients on structured finance and real estate finance (including .......

    Job Swaps 20 January 2017

  • Italian comeback?

    Scope Ratings expects a "slow, unsteady comeback" for public securitisations of Italian non-performing loan ABS in 2017. The agency says that their return "can help improve Italian banks' balance sheets, which will allow them to refocus on retail and corporate lending."

    Bank of Italy figures show that the stock of Italian gross NPLs fell by €4bn to €356bn in the .......

    News 10 January 2017

  • Issuance estimates revised upwards

    Most structured finance markets and their credit conditions seem favourable and in some cases ideal going into 2017, according to S&P's 2017 outlook. The agency has therefore increased its issuance forecast since October, projecting US$365bn-US$375bn total issuance for the US, with China expected to see the second largest issuance at an estimated US$140bn. The global total for 2017 is expected .......

    News Round-up 5 January 2017

  • Firm acquires NPL portfolio

    Bain Capital Credit has acquired a €364m portfolio of Spanish non-performing loans. It comprises defaulted first lien Spanish loans to hotel operators, real estate developers, retail centres and residential real estate assets.

    Fabio Longo, md and head of Bain Capital Credit's European NPL and real estate business, says: "We continue to find Spain one of the most attractive markets in .......

    News Round-up 3 January 2017

  • State rescue?

    Nationalisation could delay BMPS securitisation

    The Italian parliament has approved €20bn to prop up the country's most fragile banks while it readies a possible state rescue of Banca Monte dei Paschi di Siena (BMPS), its third largest lender. The parliamentary approval follows scepticism expressed by Atlante II over the terms of a bridge loan that is key to BMPS' planned €9.2bn NPL securitisation.

    The senior .......

    News Analysis 21 December 2016

  • NPL ABS volumes gauged

    Current global non-performing loan assets could translate to potential securitisation volumes of US$270bn-US$900bn, assuming a 15%-50% discount to the par value, according to S&P estimates. However, given that new NPLs may only arise as institutions raise capital to absorb losses, the figure could be much larger.

    NPL securitisations have historically involved mortgage assets. However, with the recent commodities bust and .......

    News 15 December 2016

  • Mammoth NPL ABS planned

    UniCredit has unveiled plans to divest €17.7bn of NPLs, as part of an effort to deleverage its non-core portfolio. Dubbed Project Fino, the strategy involves transferring two portfolios of NPLs to SPVs in which the bank will retain a minority position.

    Fortress and PIMCO will each manage an entity and take a majority position, which is initially expected to be .......

    News Round-up 14 December 2016

  • Improved flexibility?

    Legal changes driving Greek NPL expansion

    KKR Credit's Pillarstone unit recently bolstered its senior team in Greece. The move reflects rising interest in the Greek NPL market, following the second appraisal of the country's economic adjustment programme.

    The Pillarstone hires follow a May 2016 agreement between KKR, Alpha Bank and Eurobank to expand the platform in Greece. The firm's entry into the Greek NPL market coincides .......

    News Analysis 8 December 2016

  • RMBS 'to perform well' in 2017

    US RMBS will continue to perform well in 2017, with several trends from 2016 continuing into next year, according to Moody's. The agency believes there will be more diversified collateral and some structural changes in new deals, while existing deals will remain strong or improve.

    The rating agency says that the GSEs will encourage broader access to credit and so the credit quality .......

    News Round-up 7 December 2016

  • SMART CLO objections flagged up

    The potential disposal of non-performing assets, as previously proposed by SMART SME CLO 2006-1, has been opposed by noteholders who assert that it would be in breach of the terms of a CDS between the issuer and swap counterparty, Deutsche Bank Frankfurt. As well as problems with the CDS, the noteholders have identified issues with the bank account agreement.

    The .......

    News Round-up 5 December 2016

  • New entrants to boost issuance

    Moody's anticipates a slight increase in issuance of European ABS and RMBS next year. The agency expects new entrants to take a larger share of the market, amid increasing appetite for non-performing loan transactions and marketplace lending ABS.

    "Our key credit considerations would focus on differing origination criteria from traditional banks and the lack of historical data. Auto ABS will .......

    News Round-up 2 December 2016

  • RPL RMBS characteristics surveyed

    Re-performing loan (RPL) RMBS issuance has remained steady since the launch of the first transaction, Towd Point Mortgage Trust 2015-1, last year. Moody's expects volumes in the sector to increase, given the steady supply of non-performing loans and RPLs from ongoing sales by the US Department of Housing and Urban Development (HUD), the GSEs and various banks.

    As of 30 .......

    News Round-up 1 December 2016

  • EMEA SME ABS trends to continue

    EMEA SME ABS market activity and deal characteristics will be driven by a broad array of originators' objectives, says Moody's. The trend for disintermediation will lead to more marketplace lending and SME CLO transactions, with the rating agency expecting performance to remain stable across all major markets.

    Originators have multiple objectives, such as tapping either the public market or targeting .......

    News Round-up 30 November 2016

  • Rare Irish RMBS priced

    Lone Star has privately placed a rare Irish non-conforming RMBS. Dubbed European Residential Loan Securitisation 2016-1, the €536.6m transaction is backed by both performing (representing 32.58% of gross book value) and non-performing (63.81%) mortgages originated by Irish Nationwide Building Society.

    The loans were extended primarily to borrowers in Ireland, although there are £2.07m of loans secured over residential properties located .......

    News 29 November 2016

  • On the agenda

    Efforts to tackle European NPLs gather pace

    Efforts by European policymakers to tackle the region's non-performing loan burden appear to be gathering pace. Establishing a central clearinghouse for NPLs has been mooted, while the ECB's latest Financial Stability Review calls for the creation of further government-backed bad banks.

    The concept of a central clearinghouse as a solution to Europe's NPL issue has been backed by Gert-Jan Koopman, .......

    News Analysis 23 November 2016

  • Servicers 'could be NPL saviours'

    Italian banks' outstanding balance of non-performing exposure (NPE) is nearly five times higher than the amount registered in 2007. With NPL disposal proving to be tricky, S&P believes Italian servicers can be part of the solution by leveraging their expertise and capability as third-party asset managers.

    The total stock of Italian NPE decreased in 1H16 for the first time in .......

    News Round-up 22 November 2016
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