At the Distressed Investments Forum held by DDC Financial Group in London in March 2016, Simon Kerr Publisher of Hedge Fund Insight spoke to Michelangelo Margaria of Moody’s Investor Services about the revival of the the market for securitization of Non-Performing Loans (NPLs) in Italy. The first issuance of the second wave (the first started in 1999) is expected this year. Moody’s has issued position papers on the topic so that the market appears to be primed for activity to address the €200bn of NPLs at Italian banks.
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The interview lasts 11 minutes.
Other Podcasts available on Hedge Fund Insight:
Organising Research & Staff Development in Equity Hedge – A Podcast with Stuart Mitchell
RWC Talk About Marketing And Doubling Their Assets
Value Investing in China with Value Partners
UPDATE
Moody’s (March 15th 2016): Italian ABS SME loan and lease total delinquencies slightly increased in the 3 months ended January 2016
Italian ABS SME Loan and Lease Indices – January 2016
London, 15 March 2016 — The total delinquencies of the Italian asset-backed securities (ABS) backed by loans and leases to small and medium-sized enterprises (SMEs) slightly increased to 7.7% in January 2016 from 7.2% in October 2015. However, the 60-to-90 day delinquencies marginally decreased over the last quarter to 0.7% in January 2016 from 0.8% in October 2015,says Moody’s Investors Service.
The average constant prepayment rate decreased to 4.6% in January 2016 from 5.7% in October 2015.
As of January 2016, the 32 Moody’s-rated transactions in the Italian ABS SME Loan and Lease market had an outstanding pool balance of EUR19.4 billion, representing a year-over-year decrease of 10.4%.
Moody’s 2016 collateral outlook for Italian Leasing/SME ABS is stable (see “2016 Outlook – Credit Quality of European RMBS and ABS Will Improve”, 9 December 2015).
Moody’s outlook for Italy is stable, with the expectation that the Italian GDP will increase marginally by 1.2% in 2016 (see “Credit Opinion: Italy, Government of, 18 December 2015”).
For the latest ratings activity, please refer to Related Research tab of the index report: Italian ABS SME Loan and Lease Indices – January 2016.
Link: http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF428392
Moody’s publishes its indices mid-month to http://www.moodys.com in the Structured Finance sub-directory.
In addition, Moody’s publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at http://www.moodys.com/SFQuickCheck.