Synthetic NPLs gain traction

Pic© DV

Category: Capital Relief Trades ABS

Previous Story       Next Story

The ECB’s latest non-performing loan provisioning guidelines are expected to trigger increased synthetic NPL securitisation issuance. Nevertheless, defining a credit event for a portfolio of loans that are already non-performing remains a significant challenge.

The ECB guidelines prescribe full provisioning for unsecured NPLs after two years and seven years for secured NPLs.

Already registered?

Not yet registered? Join today to access SCI Content.