Osservatorio NPE Market Credit Village
Lower volumes and fewer deals in 2023
During 2023, Credit Village's National NPE Market Observatory surveyed 458 transactions involving the sale of NPL and UTP loans with a total volume of 30.9 billion euros in GBV (Gross Book Value).
In the primary market, there were 282 completed transactions involving the sale of NPE portfolios, up slightly from 251 in 2022, but with the volume in terms of overall GBV falling further to EUR 14.7 billion. For the first time since 2017, the volumes transacted directly between originators and investors were lower than those sold in Re-Trade transactions on secondary markets, which instead recorded volumes of EUR 16.2 billion, with the number of transactions, however, numerically much lower than in the previous year: 176 compared to 265 .
It should be noted that the figures for the secondary market include the acquisition by Banca Ifis of the company Revalea from the Mediobanca Group, which held non-performing loan portfolios with a Gross Book Value of 6.5 billion euro when the transaction was finalised last October. The secondary market figures were also affected by two jumbo deals for a total of more than EUR 3 billion of GBV, which saw Credit Factor, a company in which IBL and Europa Factor hold stakes, as buyer-investor, and another jumbo deal by Cherry Bank, which purchased an EUR 864 million portfolio of GBV. Giovanni Bossi's bank with this deal reaches EUR 2.7 billion of GBV purchased in 2023 alone.
In the absence of the GACS, which until June 2022 had favoured the divestment of large NPL portfolios by bank originators, the assets under management by the various FIAs (Alternative Investment Funds) are growing, solutions that offer a series of opportunities to the originator banks, ranging from deleveraging and derecognition aspects to the possibility of maintaining fund shares. Among the most gifted in terms of contributions are the Back2Bonis Fund, which has reached volumes of more than EUR 2.5 billion, the Efesto Fund, which manages claims against some 2,500 SMEs for a GBV of about EUR 1.7 billion, and the recent Olympus 1 and 2 contribution funds, which already have claims worth about EUR 2 billion.
Unfortunately, many of the securitisation transactions that had obtained a State Guarantee continue to perform below expectations and business plans. In order to increase cash collection, many vehicles started to divest portfolio segments. Twenty-one SPVs (Special Purpose Vehicles), owners of GACS-securitised portfolios, sold one or more loan portfolios during 2023.
There was no shortage of multi-originator transactions structured mainly by ICCREA , which involved dozens of Cooperative Credit Banks in a series of disposals with primary investors for more than EUR 1 billion, and by the Consorzio delle Banche Popolari Luzzatti, which closed a EUR 313 million GBV securitisation, involving 11 banks on the seller side, of which 7 were consortium members.
In terms of asset classes, 40% of the GBV sold, amounting to EUR 12.3 billion, is represented by secured debt exposures, i.e. secured by real estate assets, while 60% is made up of unsecured loans not secured by real estate assets.
To request a free copy of Credit Village's NPE Market Observatory White Papers 2023 write to info@creditvillage.it.
Relevant Links:
https://www.creditvillage.news/2024/02/27/osservatorio-nazionale-npe-market-di-credit-village-nel-2023-calano-volumi-e-numero-di-transazioni-458-deal-conclusi-per-un-valore-complessivo-di-309-miliardi-di-euro-di-gbv/
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