Crédit Agricole which is operative in italy with its subsidiary Cariparma put on sale on the secondary market 6 billion euros GBV of non performing loans (including bad loans and unlikely-to-pay) issued to Italian retail consumers and SMEs years ago and securitizd by 4 different securitization SPVs, Reuters wrote.
The auction for the project, named Puppy, is held by financial advisor Kpmg and non binding offers are expected next March, while the sale is expected to close by next June.
As most of loans of the 6 billion euros portfolio are unsecured, this means that the portfolio might have a net value of just some hundreds million euros.
Actually net price for Npls transactions in Italy in 2017 was 18% of GBV, Banca Ifis estimated in its last Npl Market Watch, adding that portfolios supported by the italian Government guarantee (Gacs) have been valued at higer prices as far as unlikely-to-pay portfolios (see here a previous post by BeBeez). The 18% figure is to be read taking into mind that the average price for mixed (secured and unsecured) portfolios (the majority of the deals value) have been 19%, while the average price for secured portfolios has been 31%. Finally the average price for unsecured portfolios has been 5% (or 10% for consumer unsecured portfolios).