NPL Securitisation And The Trail Blazing Funds

The recent news that Blackstone and Lone Star have just securitized a portfolio of re-performing loans secured by Spanish and Irish real estate respectively, could potentially mark the arrival of a new era for the European securitization market. Indeed, if these transactions prove themselves to be the green shoots for the emergence of a new fixed income product, then this has the potential to have widespread positive ramifications for not only yield hungry fixed income investors but also for those banks that have balance sheets saddled with large volumes of non-performing loans (NPL).

Indeed, we have long advocated the view that securitization has the potential to play an integral role in the removal of swathes of NPL's that are currently stifling banks. In fact, the feasibility of such a product was the subject of an article that I had published in 2014 in the fall edition of CRE Finance World (Europe's Future Power Couple – CMBS; A Financing Tool for NPL Portfolios).