20 Primrose St, London EC2A 2RS

09 May 2018

25+ Speakers

Leading authorties in NPLs

125 Seats

Register to secure yours today

Join SCI for the inaugural NPL Securitisation Seminar

SCI’s NPL Securitisation Seminar provides an opportunity for key investors and issuers to come together to add depth to discussions around NPL portfolios around Europe, the regulatory treatments of such securitisations and the benefits of this technology as an exit mechanism. Panels cover deal structuring, servicing, regulations, investment trends, ratings, and a case study. Regular networking breaks have been built into the programme to complement each panel.

Why SCI Seminars?
We carefully build our boutique events to offer granular discussions around the chosen topic. Thee are no '101' panels - panels are designed to assume the experienced practitioner is present. Delegates therefore benefit from thorough education from the very start and lengthy, frequent networking. The event begins at lunch time to allow you time to get office commitments out of the way and finishes at 7.30, after cocktails, to make sure you are able 'to work the room' and meet as many fellow delegates as possible.



    An overview of the NPL sector in Europe, looking at basic characteristics of non-performing loans, the collateral in question, the various jurisdictions in question, how regulators and banks treat NPLS, and how loan portfolios are traded and serviced.


    This panel provides an overview of the main issuer and investor participants in the European non-performing loan market, as well as issuance volumes and major jurisdictions. It also highlights challenges associated with non-core disposals, the role of ‘bad banks’ and government support schemes – such as GACS – and the importance of the securitisation exit.

  • Lunch & Networking


    This panel covers the main forms of NPL securitisation, including structuring and rating agency considerations. It also outlines the steps involved in executing an NPL securitisation, such as due diligence, estimating recoveries and addressing cashfow uncertainty. Case study of a hypothetical deal.

  • Networking Break


    Post-investment asset management requirements combined with market illiquidity means investors that control servicing platforms have an advantage when investing in NPL portfolios. This panel explores the role of servicers and the diferent servicer strategies in resolving non-performing exposures, including collections, loss mitigation, workouts and enforcement. It also examines the importance of sourcing relationships and strategic partnerships.

  • Networking Break


    The EBA’s recent consultation on signifcant risk transfer features a section on NPL securitisation. This panel discusses feedback received from the consultation, including views on facilitating a well-functioning NPL securitisation market and core structural features associated with the SRT assessment of NPL securitisations. Other regulatory developments – such as secondary market initiatives, the introduction of ReoCos in Italy and the ECB’s strict provisioning guidelines – will also be covered.


    This panel focuses on emerging NPL opportunities, including new jurisdictions and asset types, as well as new participants entering the market. It also looks at the growing popularity of synthetic NPL securitisations, highlighting their advantages and disadvantages versus cash deals.



A 20% discount curently applies

Delegate registration is £785 - but use the code npl18jump and pay just £628 (+vat)

Start the registration process below:


Speaker 1

Christian joined the European Banking Authority (EBA) in November 2010 and is responsible for regulation and policy issues relating to the capital markets union (including securitisation, covered bonds and sustainable finance). While at the EBA, he has been the main architect of the STS securitisation framework and has been one of the driving forces in the implementation of the STS framework into global standards and European regulation. He has also developed an EU harmonised framework for Covered Bonds and is currently working on significant risk transfer and NPL securitisation.

Prior to this position, Christian worked at De Nederlandsche Bank (DNB) as a banking supervisor and was responsible for prudential supervision on large and midsize banks in the Netherlands. While at DNB he set-up and chaired a structured finance taskforce and was a member of the covered bonds team. 
From 2000 to 2008, he held various roles within structured finance and covered bonds at HSBC Bank, Fitch Ratings and Fortis Bank. At HSBC he was responsible for the origination and structuring of securitisation and covered bonds transactions in Benelux, Nordic region and Eastern Europe, while at Fitch he rated RMBS and Covered Bonds transactions across Europe and was a member of rating committees on all types of securitisation and covered bonds.

Christian holds an MSc in Economics, from the University of Groningen (Netherlands).

Christian Moor

 Principal Policy Advisor

 European Banking Authority (EBA)

A thriving network awaits.

SCI's events are set up for effective education and networking. Here's what delegates attending SCI's previuos events said:

  • The seminar was excellent...

    I came away thinking that "it's NOT just another regulatory arbitrage fad" ... but that the insights shown in properly structuring solutions to properly recapitalize banks after the credit crunch got me thinking of mechanisms that could be critical in building a new, shareholder value-creating, global banking industry of tomorrow. All speakers were knowledgeable and approachable. Location and time, starting at 12 noon, suited me perfectly! 

  • Also interested in esoteric credit strategies

    "Great gathering of banks, arrangers and investors. Speakers were very forthcoming. I am interested in esoteric credit strategies in general."

  • I'd attend this event every year.

    "...it was very helpful to meet some of the other key players in this space and hear first hand how they navigated some of the difficulties in completing transactions."

  • It was a well thoughtout event...

    ...that covers pretty much the relevant aspects of these transactions. I also like the networking sessions...to be connected with other investors, issuers and others.


Bank acquisition trend continues

01 March 2018

HSH Nordbank has been sold for €1bn to JC Flowers and Cerberus. The agreement is accompanied by a sale of predominantly shipping non-performing loans to an acquisition vehicle of Cerberus and JC Flowers, as well as minority owners GoldenTree Asset Management and Centaurus Capital. The sale reflects an investment trend, whereby private equity investors acquire distressed financial institutions rather NPL portfolios.

"This is a pan-European trend," says Denise Hamer, partner at Trace Capital Advisors. "It involves selling NPL portfolios alongside internal restructuring teams as an entire platform to PE funds."

She continues: "European regulators are looking at what is called the Canadian model, where you have a few systemic, well capitalised banks that don't compete on pricing. This entails consolidation, which means selling non-core assets."

Once the funds buy the platforms, they service and/or liquidate the assets. "They have sophisticated fixed-cost servicing platforms that they need to feed," Hamer notes. The acquired leasing, factoring and repo platforms are then merged into a single service that the banks outsource to.

The same 'lean and mean' model seems to be reflected in the HSH Nordbank case. Tom McAleese, md at Alvarez and Marsal, says: "It is our understanding that the new owners of HSH Nordbank propose to change the business strategy and operating model into a specialty project finance bank, while further reducing balance sheet size and location footprint, as part of their value creation strategy."

Austrian bank BAWAG is another case in point. The lender was acquired by Cerberus in 2006 and was bailed out in the same year, after being sued by creditors of collapsed US futures house Refco, one of its affiliates. In an October turnaround, the bank listed its first IPO in a decade at €1.9bn, Austria's biggest-ever listing.

Lone Star's acquisition of Portuguese bank Novo Banco is another manifestation of the trend, but also an example of the challenges that accompany such acquisitions. "In the Novo Banco case, some of the loans will be sold to third-party servicers, while others will be serviced internally. The difficulty comes with the bank's restructuring," says veteran investor Joao Costa Reis.

In particular, investors might have to deal with local impediments, such as inflexible labour or tax laws that can deter a bank from auctioning its REOs. Investment horizons can also be quite long, spanning up to seven or more years, a stark contrast with the three-year period that is typical of NPL portfolio purchases.

The 28 February deadline for HSH Nordbank to be sold or wound down was set by the European Commission, following a €13bn government bailout in 2009. Given that it is now relieved of its legacy NPLs, the non-core bank will cease to exist, which means the guarantee of Hamburg and Schleswig-Holstein will be fully terminated after the closing of the transaction.

The carve-out of the portfolio improves the credit quality of the new bank. The NPE ratio is expected to fall to under 2%, compared with 11.7% as of end September 2017, which is satisfactory by European standards. Furthermore, the shipping portfolio will only make up around 8% of the balance sheet.

However, the agreement remains subject to various approval procedures, including approvals from the European Commission and the state parliaments of Hamburg and Schleswig-Holstein. Subject to this, the closing of the transaction is expected to occur in the second or third quarter of 2018.

AnaCap extends Romanian foothold

18 January 2018

A consortium led by AnaCap, Czech debt recovery firm APS and Deutsche Bank has won the bid for a non-performing loan portfolio put up for sale by Alpha Bank Romania. The €360m corporate transaction coincided with another €50m Romanian retail NPL transaction between Alpha Bank and B2Holding.

Prior to 2014, banks and financial institutions operating in Romania employed a relatively wide range of solutions for credit recovery, with limited efficiency. However, further to the implementation of Basel 3 prudential regulations, EU Directive 2013/36/EU and Regulation 575/2013, the National Bank of Romania has started to apply pressure on local banks to dispose of their problematic assets and clean up their balance sheets.

According to an AnaCap source: "On the credit side, we've seen great improvements in Romania. When you look at the underlying value of the assets, you can see that in a three- to four-year period, it's driven by macroeconomic fundamentals."

The Alpha Bank transaction extends AnaCap's foothold in Romania, being the firm's third such investment in the jurisdiction. Its first Romanian NPL transaction was completed in 2014.

However, the firm's diversified Romanian NPL portfolios are not driven by macroeconomic performance but "tied" to it. This means that the factors driving performance for each industry sector that it selects are averaged out, thus tying with underlying macroeconomic performance. This has benefits in the sense that there is protection from a downside - although it is easily counterpoised by the lack of a gain from an upside in a particular sector, business or industry.

The jurisdiction, however, has its own challenges. The source observes: "Political risk is an issue. In our experience, laws relating to insolvency, restructuring and enforcement change every two to three months - even though many cases such as insolvency cases can be completed within two years." The source adds that this was true for 2016, rather than any period thereafter.

AnaCap expects a steady flow of Romanian NPLs to hit the market over the next two years. The source notes: "It's not a market where you can get US$10bn transactions. But if you are a smaller investor, there is supply, motivated sellers and credit penetration."

Austrian banks were the first to bring Romanian NPL transactions, given their typically small exposure to the jurisdiction - which allowed them to take losses. Italian banks followed for the same reasons, with Greek banks taking their turn in an effort to strengthen their balance sheets.

AnaCap has historically been an active participant in the CEE region, which has experienced an increased interest by NPL investors, due to improved economic conditions, along with an increase in provisioning following the AQR exercises in several of the countries. According to Deloitte, in 2016 the largest number of completed NPL transactions took place in Romania (37%), followed by Hungary (24%), Poland (11%) and Slovenia (9%).


MPS NPL securitisation takes off

11 January

Quaestio, the Italian rescue fund, has closed its investment in the mezzanine tranche of Monte dei Paschi's €25bn non-performing loan securitisation. The transaction is a crucial part of the restructuring plan that was agreed with European authorities last July and a breakthrough that is expected to boost NPL securitisation deal flow (SCI 5 July 2017).

Quaestio paid €805m in exchange for the mezzanine notes and also plans to carry out its investment in the junior tranche in 1H18, following an expected GACS rating for the senior tranche of the Monte dei Paschi securitisation. The fund will manage the whole operation in relation to both the structure of the securitisation, the loan recovery plans and Monte dei Paschi's recovery platform - which was acquired by both Quaestio and Cerved (SCI 20 October 2017). Monte dei Paschi plans to complete the securitisation by mid-2018.

Quaestio is financed by Italian and international financial institutions and was set up to invest exclusively in NPLs. The fund is currently the largest investor in the Italian NPL market - which accounts for a quarter of Eurozone NPLs - and one of the biggest investors globally in this sector. It is currently involved in four NPL securitisations of approximately €31bn, with a total investment in the region of €2.5bn.