Southern Europe NPL securitizations run into trouble

Province of Trento
By Tom Brown
05 Aug 2020

Two NPL securitizations originated via the Italian guarantee scheme (GACS) have hit trouble following a fall in collections due to the coronavirus crisis, with the deals triggering interest payment shortfalls on the junior notes.

The BPBNP 2016-1 and BCCNP 2018-1 deals failed collection ratio triggers in their June 20 reporting period, exceeding the 90% limit. As a result, both deals have seen interest deferred on the junior class ‘B’ notes.

Both of these deals were securitized via the GACS scheme, which ...

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