NPL securitization to increase in 2021 after post-Covid dip

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NPL securitization to increase in 2021 after post-Covid dip

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Panoramic view of Palazzo Mezzanotte (in english: Midnight Palace), seat of the Italian stock exchange in Milan, Italy | Marco Rubino/marcorubino - stock.adobe.com

Non-performing loan securitizations are expected to decrease by up to 70% this year in Italy, with little activity expected across the rest of Europe in the wake of the coronavirus lockdowns. But 2021 will see banks looking to securitize the next generation of defaulted loans, rating agencies say.

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