Banca Ifis published on 17th July its quarterly update (here the full report) on Italian NPL Market.
From the press release:
With over 33 billion euro of non-performing loans sold in the first five and a half months of 2017 – and with the closure of the FINO project, which saw the sale of € 17.7 billion euros of mixed non-perfroming loans from Unicredit to PIMCO and Fortress – 2017 will go on to record as the year of the “explosion of NPL transactions”. According to Banca IFIS estimates, contained in the exclusive report “Market Watch NPL – The Italian Scenario”, around 71 billion euro of additional non-performing loans will be sold by 2017, reaching 104 billion worth of distressed assets exchanged in the Italian market. An amount that makes 2015 and 2016 NPLs volumes seem reductive (respectively 19.1 billion euro in 2015 and 17.3 billion euro in 2016). (…)
The average prices of secured portfolios (guaranteed by other assets or real estate) show a drastic fall after the surge in the end of 2016. In the second quarter of 2017, the price level for these assets fell to 33%, as a result of an increase of the offer in this market. If the prices of secured assets fall, then those of consumer portfolios go up. The average price is around 11% due to an increase in demand and higher quality of credit (and their heritage of information)
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