NPL in the EU are declining (but Watch out for GACS)

According to the latest press release, efforts to reduce risks in the EU banking sector are bearing fruit, as in its fourth progress report on the reduction of non-performing loans (NPLs), the Commission confirms that NPL levels are continuing their downward trajectory towards pre-crisis levels.

The ratio of NPLs in EU banks has come down by more than half since 2014, declining to 3.3% in the third quarter of 2018 and down by 1.1 percentage points year-on-year.

Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Unionsaid: “Working out the remaining stocks of non-performing loans is part of our ongoing efforts to make the banking sector even stronger. Our banks are now better capitalised and better prepared to withstand economic shocks. We’ve recently agreed on more robust framework to regulate and supervise banks. Given this progress in reducing risks, I call on EU Finance Ministers to move forward with other measures to complete the Banking Union.”

As I happend to discuss at the recent Global ABS 2019 a substantial part of NPL transactions have been disposed using securitization schemes and expecially for the Italian ones involving GACS senior tranches are still on banks’ balance sheets.

This may mean that even though the general picture can look positive, some critical issues are still pending as I pointed out in this article in italian.

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Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

Link to my updated business profile

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GLG – Gerson Lehrman Group – Council Member

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Posted in Entering Italian NPL Market, NPL e Distressed Assets | Tagged , , , , | 1 Comment

#SaveTheDate IMN Global ABS 2019

The 23rd Annual Global ABS, will take place 11-13 June 2019, in Barcelona, Spain.

It will host to over 3,000 attendees, and a facilitator of thousands of 1:1 private investor and issuer meetings, making Global ABS a major catalyst for structured product deal flow in Europe.
 
A must- attend event, Global ABS is a platform that informs, engages and delivers a competitive edge for the entire European structured finance community.

Keynote Speakers will include CORNELIA HOLTHAUSEN Deputy Director General Market Operations – European Central Bank, EDWIN SCHOOLING LATTER Director of Markets & Wholesale Policy, Financial Conduct Authority VERENA ROSS Executive Director European Securities and Markets Authority and many others qualified experts

I am proud to be speaking in the panel on “Spotlight on Italian NPLs: GACS Review and NPL Progress to Date”

  • Impact of new GACS on Italian NPL market
  • UTP Multi-originator deal as alternative approach for deconsolidation
  • How Calendar provisioning and new regulatory changes may affect NPL market
  • How lack of economic growth may affect NPL market in Italy
  • Is political uncertainty scaring foreign investors?

Do you like these updates? subscribe my newsletter 

Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

Link to my updated business profile

To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

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GLG – Gerson Lehrman Group – Council Member

Posted in Events | 2 Comments

UTPs are the hotspot of Italian NPE Market


According Milano Finanza, some 18 Bn Unlikely To Pay exposures are going to be offloaded from banks’ balance sheets or assigned to outsourcers for credit management.

Monte dei Paschi di Siena, is said to be ready to sell 8Bn of UTPs to SGA, the bad bank owned by Italian Ministry of Economy and Finance. The deal is expected to be settled with a transfer price close to Net Book Value and is a relevant step in the broad restructuring process of what many say to be the World’s Oldest Bank. A successful turnaround process is essential for the sale of Italian Government share in the bank.

Source FY2018 and 4Q18 BMPS Preliminary Results

After a 2 months due diligence performed by Prelios on a 10 Bn UTP portfolio,
Intesa Sanpaolo is said to be negotiating an agreement for the sale of 4Bn pool with a transfer price of 50-55% and outsourcing assignment for the remaining 6 Bn.

I am going to talk about new model of Credit Management to deal with UTP exposures in my next seminar.

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Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

Link to my updated business profile

To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

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GLG – Gerson Lehrman Group – Council Member

Posted in Entering Italian NPL Market, Italian Banks | Tagged , , , , | 1 Comment

Unsecured Debt Purchasing & Servicing – IDF, Milan 22nd May

Proud to be moderating the panel on Unsecured Debt Purchasing & Servicing at the next Italian Debt Forum NPL & Restructuring in Milan on May 22.

The event will take place at Four Points Sheraton Hotel Milano

Confirmed speakers include

Download the brochure

Register to the Event

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Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

Link to my updated business profile

To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

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New Models of Credit Management: the UTP challenge and the broader NPE environment in Italy

Proud to announce that on the 13th of May during the 2nd annual NPL Securitisation Seminar, will be held my seminar on

Topics discussed will include:

  • Challenges for the special servicing industry raised by increasing volumes
  • Competitive landscape consolidation, specialization, M&A
  • The UTP dilemma cure vs default rate
  • New challenger disruption and old incumbent evolution
  • The broader European perspective

Speakers of  the day will include:

Find out more at the Event Website

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Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

Link to my updated business profile

To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

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GLG – Gerson Lehrman Group – Council Member

Posted in Entering Italian NPL Market, Events | Leave a comment

GACs is back (and lots of securitizations will follow)

As reported by Reuters, Italy and the European Commission have agreed on the renewal of a state guarantee scheme aimed at facilitating the sales of bad bank loans. The so-called ‘GACS’ scheme expired on March 6, but the Italian government reached an agreement with Brussels for an extension.

Italian government is expected to approve the new Gacs scheme in the same bill that will state the precautionary provisions to preserve ordinary operations of financial intermediaries and markets in case of hard brexit (here my article in Italian).

DBRS has recently published a short report on this topic highlighting how GACS has contributed substantially to boost NPL disposal volumes in the last 3 years

The new scheme is expected to be structured with a two-year term and a one-year extension option. The new scheme is also envisaged to require a higher rating level of BBB versus the prior minimum of BBB (low) on the most senior tranche.

As the first version of GACS boosted the market for securitization on NPLs, we can expect that this new version may have similar consequences. Before taking into account this update on the guarantee scheme Banca IFIS’s MARKET WATCH NPL estimated in 50bn the pipeline for 2019.

Before taking into account this update on the guarantee scheme Banca IFIS’s MARKET WATCH NPL estimated in 50bn the pipeline for 2019.

Italy’s NPL Ratio is still high compared with other EU countries, and ECB has asked Italian (as well as the other EU) Banks to make a full provision for its bad debts, not only for the new ones, as stated in March guidelines, but also for the outstanding stock.

In conclusion, most relevant drivers of NPL market in 2019 will include regulatory pressure to Non Performing Exposures as well as convenience to  use securitization schemes to benefit form the renewed guarantee scheme.

Even though current year’s volumes can hardly match 2018 extraordinary peak, we may expect a significant amount of NPL transaction also in 2019 with a large share of deal using new version of GACS. ì

#Savethedate CV Spring Date 2019 Milan Palazzo Mezzanot 5th April

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Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

Link to my updated business profile

To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

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Posted in Entering Italian NPL Market | Tagged , , , | 3 Comments

NPE R-Evolution: 2019 CV Sprig Day

Proud to be speaking at the 2019 edition of CV Spring Day that will be held at Palazzo Mezzanotte, the congress center placed in the historical building of Milan Stock Exchange on April 5.

This year programm will include 2 sessions:

  • Financial Solutions for NPL with a keynote speech by Paolo Massenza, Financial Services Leader, PwC, and a round table charied by Corrado Angelelli, Partner of Freshfields
  • Servicing models: new trends, with a keynote speech by Alessandro Biondi,co-head of NPL and distressed asset, PwC, and a round table chaired by Antonio Vanuzzo, Corporate Finance Reporter, Bloomberg

The complete program can be downloaded at this link

This year speakers include:

#Savethedate Milan 5th April Palazzo Mezzanotte

Info request can be submitted at this link

Check here if you are eligible for a Free Pass

Do you like these updates? subscribe my newsletter 

Are you interested in Italian banks and NPL/UTP market? Ask for a briefing  (in person or via conference call) by sending me a private message. I am also available for consulting projects on Distressed Assets pricing and Portfolio Management.

To get further updates Join the Linkedin Group – Entering Italian NPL Market  and follow #Liberi Di Scegliere via @blastingnews

@massimofamularo

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GLG – Gerson Lehrman Group – Council Member

Posted in Entering Italian NPL Market, Italian Banks | Tagged , , , , , , | 1 Comment