11 February, Credit Village
2018 was undoubtedly a record year for what concerns NPL transfers with 398 transactions completed, 155 more than 2017, and a total GBV for 106.4 billion euro. The figures published in the NPL Market survey by Credit Village are astonishing. Since January 2016, Credit Village has registered the NPL transactions taking place on the Italian market on a daily basis. Thanks to its independent collaborators, its Observatory is today one of the most reliable and accurate sources to acquire a complete insight in uncollectable credits in the country.
The report includes the freshly-published figures concerning the operations carried out throughout the past year on the Italian market, confirming that 2018 was a very dynamic year in terms of NPL transactions. The year also saw the Mps operation amounting to 24.1 billion euro. Although it was defined in 2017, the deal was concluded in May of last year. The total GBV amounts to 106.4 billion euro. A large part of the operations was carried out through Gacs, namely the State guarantee, with 13 transactions in total and amounting to 44.3 billion GBV altogether. Very interestingly, these 13 operations show the complexity of the portfolios which concerned 736,740 holdings from 155,691 debtors, with an average GBV per borrower of 284,704 euro. With an acquired GBV for 44.3 billion, the special purpose vehicles in charge of the securitisations had issued notes for various classes amounting to 10.4 billion in total and with a purchasing price ranging between 18% and 34%.
Twenty operations, including the 13 operations with Gacs, had been jumbo deals, namely transactions for GBV values per single transfer for over one billion euro, while they were 9 in 2017.
What’s behind the operations? 82.7% of the transacted GBV had concerned mixed portfolios, with the predominance of secured and corporate loans, while 6.9% of the portfolios was entirely composed of secured loans, and the remaining 10.4% were exclusively unsecured holdings. From 2017, there had been an increase in single name operations with 190 transactions concerning less than 20 holdings, while they were 127 in 2017. The use of special purpose companies to purchase portfolios had spread among buyers and investors. The operations through special purpose companies had been 121 in 2018 with 329 sale agreements.
What about the servicing sector? All the transactions helped to consolidate the positions of servicers on the Italian market in terms of AUM (Assets Under Management). The 28 transactions for a GBV over 500 million, amounting to 93.4 billion euro in total, were managed by only 10 services, while only a selected number of servicers (Credito Fondiario, Cerved, Prelios and Do Bank/Italfondiario) worked on the 44 billion referring to the operations with Gacs.
For what concerns the secondary market, nearly one-third of the operations, corresponding to 113, was carried out on the secondary market which had been rather dynamic, although the GBV is still moderate with 6.2 billion. However, the outlook is for a sharp increase in re-trade operations in the second half of 2019.
Source: Credit Village
Translator: Cristina Ambrosi