Credit Village’s Monitoring center on NPE Market released an update on transactions in the first nine months of the year, recording a decrease of just over 11% in the number of transactions and 15.8% in value. By the end of the year, considering the pipeline transactions and the positive closing of the MPS-Amco Jumbo deal, total volumes are estimated at around €27-28 billion. Article in Italian.
Folowing to the letter of Mr Andrea Enria, chairman of ECB Supervisory board to the Financial Times supporting the Bad Bank hypothesis, I wrote a short opinion in which I argued why a solution based on a state guarantee like the Italian GACs would be less distorting and more transparent. Read the article.
Ignazio Visco, Bank of Italy’s governor , in a speech given during a convention, has talked about the hypothesis of allowing greater flexibility in the application of supervisory rules given the strong recessione due to pandemic. According to the central banker, the natural limit to any idea of such kind is the need not to postpone default classification and the accounting of credit losses that should be anticipated as much as possible before the insolvencies become clear. Article in Italian.
Polis Fondi SGR and PwC Italia will establish an Alternative Investment Fund (so-called FIA) for the management of receivables classified as Unlikely to Pay (so-called UtP) and Non Performing Loans (so-called NPL). The Fund will operate through two separate sub-funds, one for NPLs and one for UtPs. The receivables will be acquired by the banks by contribution or assignment without recourse, involving Private Equity funds and Institutional Investors. Article in Italian.
Finint Investments SGR, an asset management company of the Banca Finint Group in partnership with Italfondiario, a company of the doValue Group, has launched Efesto Credit Fund, a specialized investment fund with an initial endowment of about 450 million. The initiative involves the transfer of Utp exposures to the new fund, allowing the deconsolidation of assets and at the same time optimizing the restructuring and turnaround potential for SMEs. According to rumors, the banks include Bper, Unicredit and BNL. Article in Italian.
Illimity Bank S.p.A. has announced the closing of two transactions for the purchase of NPL for a total GBV of 120 million Euro. Asset class involved include Special Situations Energy and Special Situations Real Estate. Article in Italian.
If you like my updates you can:
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.
GLG – Gerson Lehrman Group – Council Member