Across Europe, increased regulation, governmental reforms, higher capital requirements and new accounting standards on valuing loan portfolio transactions ("NPLs") continue to drive sales of non-core loan assets, including NPLs. That background, coupled with the fact that many investors across Europe have already raised capital in order to acquire loan portfolios which now needs to be deployed in an increasingly competitive environment, is likely to drive transactions going forward and open up new markets and/or more complex asset classes in more developed markets.
The last half of 2016 saw considerable activity in Southern Europe in particular which is likely to continue in 2017 and spread to other jurisdictions in Europe. Equally, the rising trend in non-performing loans (“NPLs”) in South-East Asia indicates that deleveraging is likely to become more prevalent there as well in the short to medium term.
Our team has taken an in depth look at the market, brought together in a report on loan portfolio transactions and their related financings. The report highlights potential structuring and execution techniques and explains key initial considerations for potential investors in a number of key jurisdictions.
You can view the report here. Alternatively, click on the relevant country in the interactive map below to view country-specific analysis for the jurisdictions covered in our report.