Loan Market Association (LMA)’s Post

I would like to thank SmithNovak for the invitation to speak in the recent #NPL #conference in #Athens, as well as my fellow panelists for the interesting discussion. The event was well organized and offered unique insights and perspectives into the #Greek #NPLmarket.   Taking stock of the current market’s status, the key takeaways follow hereafter:   i) HAPS Securitizations: A catalyst for the Greek Banks’ NPE deleveraging, nonetheless most of the HAPS securitizations are underperforming their Business Plans. ii) HAPS Mitigation Strategies: The likelihood of remedying a decaying CCR is inversely related to the size of each securitization, requiring a “compound” effort to catch up with the missed BP targets and attain higher targets in the current period. iii) REOCo Property Commercialization: Looming headwinds in commercializing the acquired properties due to a.     long onboarding times, b.     legalization processes with limited vendors’ capacity to serve an increasing asset supply c.     most of the HAPS securitization relying on the single asset sales to attain targets in excess of €150mil. p.a. iv) Amicable loan resolutions have been slow, absent of an alternative re-financing source, with redefaults weighing down on the efforts to rehabilitate NPEs v) Looking forward: i. market participants expect a number of meaningful loan transactions in 2024 in the primary (Hercules III) and secondary market ii. Bid Ask spread is still one of the key transaction considerations iii. Further initiatives are required to address the current challenges in the market and improve liquidity in the market. Based on the current market status and the expected REOCos’ accelerated acquisition pace over the coming years, we believe the Greek REOCo market represents a compelling investment opportunity in the value add and opportunistic realm with a prospect size in excess of €5bn within the next 3 years.   I am excited to work with Ioannis Orfanos, Nikos Kountouriotis and Colliers #Greece and #Europe #team to untap the investment potential by developing further a compelling servicing proposition, building also on the #Colliers #experience in the Spanish and Irish markets.

KBRA released #research outlining the current state of the #bankingsector within the #EuropeanUnion. Notably, the #EuropeanCentralBank has supported the banking sector over the past 15 years with special #liquidity operations. These long-term refinancing operations ballooned to reach a high of EUR2.2 trillion in October 2021 across #banks within the eurozone. Read the full report here: https://lnkd.in/eJn57h-U | #financialinstitutions #insightfulreserach #Europe

In our most recent secondaries webinar, Ed Goldstein, CIO of Coller Credit Secondaries, examined the growth potential of the credit secondaries market and discussed how new entrants in the industry can improve deal execution. Watch the full webinar: https://ow.ly/b5RE50R2aCW #privatecapital #privatecredit #creditsecondaries

KBRA released a report on the European #securitisation markets. Q2 2024 was the strongest quarter since 2007 for new transactions sold to investors in #Europeanmarkets. Q1 2024 demonstrated a healthy start to the year with ongoing growth in newly circulated transaction volumes, but the second quarter broke records. Read the full report here: https://lnkd.in/eZgVteeB | #insightfulresearch #Europe #structuredcredit

KBRA released a report on the European #securitisation markets. European securitisation markets recorded a strong start to the year as prime #UK residential mortgage-backed securities issuers provided a positive jump in issuance with their return to market. Read the full report here: https://lnkd.in/e_DUJnWX | #insightfulresearch #StructuredFinance #financialmarket

The Strategies for #PrivateCredit CLOs, Middle Market, BSL, & #DirectLending panel at Opal Group’s European CLO Summit in London will feature KBRA’s Eric Hudson, Senior Managing Director and Co-Head of Global Structured Credit. Attend the panel on 8 October to catch Eric’s expert views. Learn more here: https://lnkd.in/eG7_5rNE | #StructuredCredit #Europeanfinance #financialmarket

KBRA released its Business Development Company Ratings Compendium, which looks at results for the quarter ended December 31, 2023, and offers a review of perpetual continuously offered non-traded BDCs as well as recent industry developments. In this quarter’s Compendium, KBRA examines the BDC sector’s #fundingsources, highlighting that the use of traditional #bank revolving #creditfacilities continues to decline due to constraints on bank #balancesheets and the pending Basel 3 Endgame proposal. Read full report here: https://lnkd.in/eKNxkVtq | #financialinstitutions #bankcredit #interestrates

The Strategies for #PrivateCredit CLOs, Middle Market, BSL, & #DirectLending panel at Opal Group’s European CLO Summit in London will feature KBRA’s Eric Hudson, Senior Managing Director and Co-Head of Global Structured Credit. Attend the panel on 8 October to catch Eric’s expert views. Learn more here: https://lnkd.in/eG7_5rNE | #StructuredCredit #Europeanfinance #financialmarket

KBRA released #research on the issuance dynamics of the #Europeansecuritisation market. Q3 2024 steadily continued on the back of the strong pace set during 1H 2024 for European securitisation markets. An expected summer break failed to materialise as the market kept up a regular pace of issuance, already resulting in the strongest post-global financial crisis (#GFC) year for newly circulated transactions. Read the full report here: https://lnkd.in/ejzWiAFA | #structuredfinanace #insightfulresearch #europe #europeanfinance

Ryan Ray had the privilege of representing Accord Financial at the Turnaround Management Association MidAmerica Regional Conference in Grand Rapids over the weekend. Among industry peers, he’s identified 8 trends in the ABL landscape: 1. Banks are favoring bigger deals with stronger credits, impacting smaller transactions. $10MM deals and below are getting pushed out more frequently. Trend indicates banks are looking to preserve deposits, avoid deals with limited opportunity for growth and cross sale of ancillary bank products and services. 2. Regional banks enforcing stricter credit standards. 3. ABL providers targeting larger transactions, $10MM deals and above. 4. Competitive pricing resurgence, especially for stronger credits. 5. Relaxation in financial covenants observed. 6. Increase in real estate-reliant deals. 7. Drying up of PPP and ERC funds, necessitating additional capital. 8. Companies grappling with margin compression amidst pricing challenges. Contact us today to how Accord can help you navigate this dynamic landscape! https://lnkd.in/ejzwtJT6 #TMAEventRecap #FinancialTrend