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At a glance
A large number of legacy non-performing loan exposures (NPLs) continue to subsist on the balance sheets of banks. Portfolios of NPLs tie up huge amounts of regulatory capital which, in turn, limits the amount of capital that banks have available to lend to the real economy. The economic
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The recent news that the Greek parliament has approved the Greek government guarantee programme Hercules marks an important milestone in the evolution of the European non-performing loan (NPL) securitisation market. If Hercules enjoys the same level of success that we have witnessed the Italian GACS deliver, then this will have widespread, positive ramifications for not only yield-hungry investors but also the handful of systematic Greek banks that have balance sheets saddled with large volumes of NPLs.
Continue Reading Hercules – an astronomical boost for NPL securitisation
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In a push to tackle Greek’s bad debt exposure, the Greek Parliament has approved a new asset purchase scheme nicknamed ‘Hercules’. The scheme aims to assist Greek banks deleverage their non-performing loans (NPLs) without the need for the government to step in with subsidies.
Under the scheme, banks will sell non-performing loans to a special purpose vehicle, which will use proceeds from the issuance of tranched notes to market investors to purchase the loans. The Greek government will provide a public guarantee for the senior notes in the securitisation vehicle at a market rate.
Continue Reading Greek’s bad debt exposure – Hercules to the rescue!
As we approach the final quarter of the year, it is clear that during the course of 2012 the CRE industry has really begun to find its feet and take some significant steps towards counteracting the excesses of the past. Indeed last week saw the long awaited completion of the restructuring of Opera Finance (Uni-Invest) CMBS thus heralding in a new era for the restructuring of CMBS. Meanwhile Deutsche Bank is set to bring Europe’s first CMBS agency deal since 2007 to market (a circa €650m to €700m German multi-family CMBS). Given that agency deals such as this have been seen by many as one of the solutions for the refinancing void market participants will be keen to see this price well.
Continue Reading 2012 – the year of the NPL