NPLs

  • 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

  • FX issues

    Currency risk hindering Polish mortgage portfolio sales

    Recent speculation that Deutsche Bank could be selling its Polish unit has highlighted the FX issues associated with shedding non-core mortgage assets in the country. Roughly a third of Deutsche Bank Polska's assets are said to be euro- and Swiss franc-denominated mortgages, the sale of which is likely to be challenged by the Polish regulator in an effort to maintain .......

    News Analysis 21 November 2016

  • Transfer pricing

    Italian ABS hindered by NPL valuation issues

    The securitisation of non-performing loans (NPLs) has been deemed a credible solution for Italian banks seeking to offload the assets from their balance sheets. Just one deal has launched to date, however. Getting a plausible valuation for the NPL portfolio being transferred to the SPV may be one of the main obstacles.

    Francesco Franzese, founder and md of Aram Capital, .......

    News Analysis 11 November 2016

  • KKR targets shipping loans

    Pillarstone, the platform set up by KKR to buy non-core and underperforming assets in Europe, seems set to take on underperforming shipping loans following the recruitment of former Frontline Management ceo Jens Martin Jensen. Indeed, the firm recently confirmed its involvement in a shipping-related securitisation.

    Underperforming loans in the shipping sector have skyrocketed since 2008, as shipping operators have been .......

    News 10 November 2016

  • Servicer continues Euro expansion

    Situs has acquired Hatfield Philips International from Starwood Property Trust, with its combined assets under management globally now totalling US$160bn. As part of the transaction, Starwood Property Trust will retain a non-controlling minority interest in Situs.

    "The European market is a dynamic and exciting place for debt servicers currently, as banks continue to deleverage their balance sheets amid regulatory pressure .......

    Job Swaps 3 November 2016

  • CMBS partner poached

    Reed Smith has appointed Jodi Schwimmer as a partner in its global financial industry group in New York. She was most recently a partner at Dechert and brings with her two associates integrated into her practice - Samantha Chertoff and Carla Moore.

    Schwimmer's practice focuses on CMBS, real estate finance and structured finance, representing issuers, underwriters, loan sellers and investors .......

    Job Swaps 2 November 2016

  • China tests 'may lie ahead'

    While China's slowing economic growth has coincided with a slowdown in CLO activity in the country, other Chinese securitisation sectors have grown rapidly this year. However, despite strong issuance and no significant performance deterioration, S&P notes that there remain several concerns over the market's future and place as a viable funding alternative.

    China is the world's second-largest securitisation market in .......

    News 20 October 2016

  • Indian ABS collateral 'improving'

    The underlying performance and asset quality of retail loans backing Indian ABS will improve over the next two years, according to Moody's. This is despite an uptick in NPLs, resulting from tightened recognition criteria.

    The new criteria will result in NPL ratios reported by non-bank financial companies (NBFCs) rising over the next two years, but the improving underlying performance will .......

    News Round-up 13 October 2016

  • Reperforming loans up for bid

    Fannie Mae has begun marketing its first sale of reperforming loans, as part of its ongoing effort to reduce the size of its retained mortgage portfolio. The pool of approximately 3,600 loans, totalling US$806m in unpaid principal balance, is available for purchase by qualified bidders

    The terms of Fannie Mae's reperforming loan sale require the buyer to offer sustainable loss .......

    News Round-up 12 October 2016

  • Deleveraging opportunity

    Iain Balkwill, partner at Reed Smith, argues that securitisation is the answer to European NPL woes

    The balance sheets of European banks are currently stocked with huge volumes of non-performing loans (NPLs), which have largely festered while the banks have channelled their efforts towards recapitalisation. As recently demonstrated by the European Banking Authority stress tests, balance sheets have largely been strengthened, which has precipitated a marked shift in focus towards deleveraging the banks through the off-loading .......

    Talking Point 7 October 2016

  • NPL offerings auctioned

    Freddie Mac has sold via auction 5,364 deeply delinquent non-performing loans from its mortgage-related investments portfolio (SCI 12 September). Pretium Mortgage Credit Partners I Loan Acquisition, Upland Mortgage Acquisition Company II and Rushmore Loan Management Services were the winning bidders.

    The loans are currently serviced by either Wells Fargo Bank or Ditech Financial. The transaction is expected to settle in .......

    News Round-up 6 October 2016

  • Securitisation could lighten load

    NPLs in Italy, Spain and Ireland continue to weigh on banks' balance sheets, according to Moody's. It suggests this may be alleviated through securitisation, with recovery processes also playing an important role in collateral performance.

    The agency comments that enforcement procedures can be lengthy and volatile, adding to the uncertainty regarding the timing of cashflows from recoveries. Data quality is .......

    News Round-up 4 October 2016

  • Fifth community impact NPL pool sold

    Fannie Mae has successfully sold its fifth community impact pool of NPLs. The winning bidder on the pool was The Community Loan Fund of New Jersey, which is an affiliate of New Jersey Community Capital.

    The transaction is expected to close on 22 November and includes 120 loans secured by properties located in the Miami, Florida area with an unpaid .......

    News Round-up 28 September 2016

  • Chinese NPL trio prepped

    Three Chinese issuers are in the market with NPL securitisations (see SCI pipeline). One of them - China Construction Bank - only made its debut in the asset class last week.

    China Construction Bank is joined by China Merchants Bank and the Industrial and Commercial Bank of China (ICBC). China Construction Bank's next offering is sized at CNY1.56bn. The ICBC .......

    News Round-up 26 September 2016

  • 'Increased scrutiny' for Italian banks

    The asset quality of Italian banks will come under increased scrutiny if the ECB's guidance on non-performing loans (NPLs) is implemented, according to Fitch. The rating agency suggests that should the guidance go through, Italian banks will "rise up the agendas" of regulators, governments and Eurozone authorities.

    Such scrutiny will result because the new guidance will impose "realistic" and "ambitious" .......

    News Round-up 20 September 2016

  • Chinese issuance gains momentum

    China's structured finance market will continue expanding in both scope and scale, with increased asset class diversification, says Fitch. A total of CNY193.4bn of Chinese structured finance transactions were issued in 2Q16, representing a 96% year-over-year increase.

    In its latest quarterly publication on Chinese structured finance, the rating agency says the increase in issuance was principally driven by 242% growth .......

    News Round-up 13 September 2016

  • CRE investment firm founded

    An independent commercial real estate investment management firm has launched, funded by new investors and a management team that has moved from FirstKey Lending. Dubbed Allegiant, it has also inked advisory and consulting agreements with FirstKey over its existing US$215m loan portfolio.

    Additionally, Allegiant will deploy up to US$500m for investment in and management of commercial real estate debt opportunities, .......

    Job Swaps 12 September 2016

  • NPL portfolio on the block

    Freddie Mac is auctioning off a US$1.1bn portfolio of seasoned non-performing residential whole loans held in its mortgage investment portfolio. The NPLs are currently serviced by Wells Fargo or Ditech Financial.

    The NPLs are being marketed via five pools: four standard pool offerings (SPO) and one extended timeline pool offering (EXPO). Bids are due from qualified bidders on 29 September .......

    News Round-up 12 September 2016

  • Four more NPL pools sold

    Fannie Mae has successfully offloaded another set of non-performing loans, it's seventh sale to date. There were four separate winners for the equivalent number of pools on offer, which accumulated to the total sale of approximately 6,800 loans at US$1.06bn.

    Goldman Sachs subsidiary, MTGLQ Investors, was the winning bidder of the first and largest pool, coming to over US$468,000 worth in .......

    News Round-up 7 September 2016

  • Residential NPL sale announced

    The US Department of Housing and Urban Development (HUD) has announced another sale of non-performing residential loans as part of its Distressed Asset Stabilisation Program (DASP). On 14 September HUD will offer 20 non-performing residential mortgage pools made up of 10,500 notes with an unpaid principal balance (UPB) of approximately US$1.7bn.

    The sale will also consist of 12 Neighbourhood Stabilisation Outcome .......

    News Round-up 5 September 2016

  • SF department launched

    Gattai Minoli Agostinelli & Partners has launched a structured finance department. It will be run by four new hires - all from Legance - and signals the continuation of the Italian firm's expansion into new practice areas.

    The department will be headed up by Emanuela Campari Bernacchi, who will be an equity partner, and will work alongside senior associate Valentina Lattanzi .......

    Job Swaps 1 September 2016
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