NPL securitization to increase in 2021 after post-Covid dip

By Tom Brown
30 Apr 2020

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.

Based on historical data obtained after the Italian sovereign data crisis, Scope Ratings suggests that total NPL securitization volumes for 2020 will close at between €7bn and €12bn gross book value (GBV), down from €24bn in 2019.

The Italian GACS scheme is set to expire by 2021, however, ...

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