NPLs
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Landmark NPL ABS inked
Banca Ifis completes salary assignment securitisation
Banca Ifis has finalised a securitisation backed by a €1.3bn non-performing loan portfolio in gross book value terms. The transaction is the first Italian NPL ABS to be secured directly by salary and pension assignment loans.
Rated by Moody’s and Scope, the transaction consists of €158.7m A2/A- rated class Ax notes, €206.2m A2/A- rated class Ay notes, €74.4m B2/B+ rated class .......
News 22 March 2021
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Assessing arrears
Withdrawal of UK support measures eyed
Most UK residential mortgage borrowers who took coronavirus-related payment holidays in 2020 have restarted payments. Indeed, performance data for UK RMBS master trusts shows that prime mortgage arrears did not increase after payment holidays ended in 2H20.
During 4Q20, early-stage mortgage arrears for UK prime RMBS master trusts averaged 0.49%, which is lower than pre-pandemic arrears and unchanged .......
News 22 March 2021
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MPL acquisition to accelerate auto financing
Sector developments and company hires
MPL acquisition to accelerate auto financing
Market Moves 19 March 2021
Upstart Holdings is set to acquire Prodigy Software, a provider of cloud-based automotive retail software. Upstart says it is seeking to reduce the cost of auto financing by creating a modern multi-channel purchase experience. Auto retail is among the largest buy-now-pay-later opportunities, according to the firm, and together with Prodigy it aims to help .......
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Collection hitch
January NPL collections fall
Italian non-performing loan collections in January have plunged, following a December boost (SCI 26 February). Given a third pandemic wave that is about to hit the Italian economy, NPL ABS collections are still 46% below pre-Covid levels - a trend that is not expected to revert in the medium term.
According to Scope Ratings, January collections were .......
News 12 March 2021
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General QM delay proposed
Sector developments and company hires
General QM delay proposed
Market Moves 4 March 2021
The CFPB has released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from 1 July 2021 to 1 October 2022 (SCI 24 February). The CFPB is proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the Covid-19 .......
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Pandemic uplift
Covid-19 boosts NPL note sales
Non-performing loan note sales have increased by 70% since the start of the coronavirus pandemic and now account for an average of 12% of total collections. Servicers have increased note sales to compensate for lower judicial proceeds, given limited court activity during lockdowns, and a decline in collateral liquidity. However, uncertainties pertaining to NPL trading platforms and the EU’s .......
News 26 February 2021
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Irish NPE portfolio offloaded
Sector developments and company hires
Irish NPE portfolio offloaded
AIB Group is set to sell a non-performing loan portfolio in long-term default to Mars Capital Finance Ireland as part of a consortium arrangement with Mars and affiliates of Apollo Global Management. At completion, AIB will receive a cash consideration of approximately €400m.As at September 2020, the loan portfolio had a gross NPE value .......
Market Moves 22 February 2021
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Galaxy securitisation finalised
Alpha and Davidson Kempner sign deal
Alpha Bank has signed a definitive agreement with Davidson Kempner with respect to its €10.8bn Galaxy portfolio (SCI 24 November 2020). The deal is the second largest rated non-performing loan securitisation in Europe and will reduce the lender’s NPE and NPL ratio in Greece by 24% and 13% respectively.
According to the terms of the transaction, Alpha .......
News 22 February 2021
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'Unique' CLN deal readied
Sector developments and company hires
‘Unique’ CLN deal readied
Market Moves 17 February 2021
JPMorgan Chase Bank (JPMCB) is prepping the debut CLN issuance from the JPMorgan Wealth Management Mortgage (JPMWM) platform to transfer credit risk to noteholders through a hypothetical tranched CDS on a reference pool of mortgages. Dubbed JP Morgan Wealth Management Reference Notes Series 2021-CL1, principal payments on the notes are based on the performance of a US$2.36bn .......
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Seasonal effects
Servicer boost for Italian NPL collections
Seasonality effects gave Italian non-performing loan collections a significant boost for the second year in a row, even though Italy went into a second lockdown in November. Volumes were 71% higher in December 2020, similar to the 77% rise seen in December 2019, when comparing respective April-to-November averages.
However, according to Scope Ratings, December 2020 collections were still .......
News 17 February 2021
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UKML tender offers mooted
Sector developments and company hires
UKML tender offers mooted
Market Moves 12 February 2021
Coventry Building Society subsidiary Godiva Mortgages is set to purchase from UK Mortgages Corporate Funding two buy-to-let mortgage portfolios originated by Godiva and currently financed within the Cornhill No. 6 and Malt Hill No. 2 RMBS vehicles. Subject to successful completion, the timing of these sales is expected to coincide with the transactions’ payment dates in .......
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UK industrial CMBS prepped
Sector developments and company hires
UK industrial CMBS prepped
Bank of America is in the market with a £340.1m CMBS sponsored by Blackstone. Dubbed Taurus 2021-1 UK, the transaction is backed by a two-year floating rate loan (with three one-year extension options) secured by the borrower’s interests in 45 industrial assets across the UK totalling 4.1 million square-foot of floor area.The largest asset .......
Market Moves 10 February 2021
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Special situations strategy launched
Sector developments and company hires
Special situations strategy launched
Bardin Hill Investment Partners has announced the final close of the Bardin Hill Opportunistic Credit Fund and a parallel side-car vehicle, with total commitments of approximately US$600m. The firm’s flagship closed-end strategy received backing from new institutional investors globally, as well as from existing Bardin Hill clients.The strategy identifies and executes on stressed, distressed, .......
Market Moves 9 February 2021
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NPL SRT agreement inked
Sector developments and company hires
NPL SRT agreement inked
Hoist Finance has signed a co-operation agreement with Magnetar Capital that provides for new portfolio investments on a pan-European level and will create a framework for future purchases in the current regulatory environment. The aim is to make securitisation an integral part of a sustainable business model for Hoist and strengthen its purchase capabilities.The .......
Market Moves 8 February 2021
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Iberian NPL ABS performance eyed
Sector developments and company hires
Iberian NPL ABS performance eyed
Market Moves 5 February 2021
The cumulative collection ratio for the DUERO 1 non-performing loan securitisation has consistently breached its trigger level for an interest subordination event – which is set at 90% - since the April 2020 reporting period, according to JPMorgan’s latest Portuguese & Spanish NPL ABS Performance Tracker publication. After dropping to 68.4% in April from 106.1% .......
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NPL pipeline builds
European asset disposals intensify
The European banking system’s disposal of non-performing loans intensified in 4Q20, particularly in December, closing the year at €38bn in NPLs sold. An additional €40bn of NPLs could be sold on the market in 2021, with around €30bn of this amount already announced for imminent disposal, according to the latest Banca Ifis Market Watch NPL report. Transaction volumes involving .......
News 26 January 2021
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Eviction limitations extended
New law poses risk for Spanish asset quality
Royal Decree-Law 37/2020, introduced last month by the Spanish government, extends the limitations on evictions of vulnerable residential tenants until May 2021. The regulations are expected to negatively impact RMBS and non-performing loan ABS performance by prolonging the time lag until property repossession, as well as reducing the incentive for private-sector investment in Spanish residential real estate and adversely .......
News 19 January 2021