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Unsecured deals and securitisations dominate European NPL market

NPL Chart of the Week: 19 July 2019

Non-performing loan deals across Europe totalled €35.6bn so far this year, two-thirds of the total volume of closed 2019 portfolio sales tracked by the Debtwire NPL Database

The largest component of the NPLs sold so far has been NPL securitisations, standing at €10.8bn. 

This is down to a new wave of Greek securitisations, with Eurobank Ergasias alone having closed or agreed the securitisation of portfolios worth €9.4bn. 

Our coverage shows securitisation is playing an increasing role in the maturing NPL market. It has been a tool for disposal in Greece and for residential and secondary transactions in Ireland, Portugal, and Spain. The trajectory of the market is a subject for discussion at the forthcoming NPL conference during Debtwire Week. 

Unsecured portfolios also represent a significant chunk, with €3.2bn of these being from Italy, which was the second most active market in the first half of the year. 

In stark contrast to the early stages of the NPL market, characterised by large commercial real estate sales, the volume of residential NPLs sold this year, €4bn, is twice that of CRE NPLs, €2bn. 

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