NPL investors continue to head south. Deals keep coming out of Spain and new markets, such as Portugal, Greece and Cyprus, are slowly emerging. But the real action has been in Italy, which finally has started to address its EUR 200bn bad debt mountain.
This webinar goes through the events that led to Agrokor filing under new special process, hurriedly voted through by the Croatian government, and to look at current state of play as well as highlight questions that bondholders and potential investors need to be asking. Led by Chris Haffenden, Nick Smith-Saville and Elena Shutova
The European commercial real estate market got off to a slow start in 2017. Transaction volumes during the first quarter are thinner than a year earlier. However, there are enough interesting themes emerging this year.
With political populism, negative interest rates, scarcity of liquidity, mounting regulation and the ties that bind the European Union seemingly beginning to unravel, many are on guard and wondering where the next shock will come from.
2016 proved to be another challenging year for the restructuring community, mostly as a result of a continued slim pipeline of workouts and distressed opportunities. Hedge fund returns remained well off the pace of their previous years, although bets on commodities, especially oil & gas, paid out handsomely, enabling many funds who had jumped in too early the prior year to make good their previous losses.
Last year defied many forecasts, with the Brexit referendum and election of US President Trump both upsetting the odds. This year could also be challenging for leveraged finance, with reduced central bank tailwinds as well as the triggering of Article 50 in the UK. Commodity-price volatility also leaves further jitters ahead, while the Netherlands, Germany, France and Norway face elections.
With banks fighting hard to keep hold of their turf, offering competitive leverage on deals, asset managers are increasingly looking to stretched senior financing as a way to compete in a level playing field. But with a rising number of players expected to offer the 5-6% stretched senior in 2017, the new debt solution risks doing to the unitranche what second lien did to mezzanine.
The Italian banking market continues to experience challenges surrounding asset quality, capital adequacy and profitability. In July 2016, the European Banking Authority stress tests results highlighted Italy’s banking problems and the recent events have highlighted the overall fragility of the system.
On Wednesday, theDebtwire European Restructuring Forum 2016afforded delegates an excellent opportunity to engage with market participants discussing the latest developments in the European restructuring landscape.