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Three things to watch in Europe's NPL market

We’ve selected the hottest topics to explore at the forthcoming NPL event on 16 October, taking place during Debtwire Week

1. Growth of securitisation

Securitisation is playing an increasing role in the maturing NPL market. In fact, some 20% of loan portfolio sales so far in 2019 have been in an NPL securitisation. 

€11.5bn of NPL securitisation has taken place in the first six months of 2019.

Practitioners point to securitisation as being a tool for complex granular portfolios, although there is debate as to whether it will be a long-term trend and what the impact is for secondary markets. 

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Video: Giovanni Gilli of Intrum shares his views on trends in the Italian market

2. Southern opportunities

It may come as no surprise that Southern Europe looks set to dominate the next twelve months of NPL activity in Europe. More than three quarters of the ongoing deals we are tracking are expected in Italy, Spain, Greece and Portugal – equivalent to €73.8bn. 

It's also been the location for some of the most significant transactions this year, including Eurobank’s €9.4bn securitisation and the €10bn UTP partnership between Intesa and Prelios. We'll go behind the scenes of major deals to understand what they mean for future opportunities.

There are currently €4bn+ of NPL and REO portfolios on the market in Portugal, according to Debtwire.

3. Beyond Europe?

In Europe, Greece overtook Italy as the most active country for loan sales according to our latest analysis. It also shows the pace of disposals has slowed from 2018. Is it time to look beyond Europe? 

Earlier this year, the top NPL buyers announced they were ready to pour more money into the market pursuing opportunities, with Cerberus expressing interest to originate deals outside of the region. 

At the event, we'll be exploring the new global frontiers on the radar of investors by assembling local experts from China, India and Brazil. 

The NPL event take places on Wednesday 16th October 2019 at Waldorf Hilton in London as part of Debtwire Week (15 – 17 October 2019) – a major event to help identify, explore and connect the market around fixed income opportunities. Register your place at https://events.debtwire.com/debtwireweek

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