Global Debt Sales survey 2012 - Vastgoedjournaal

ASSETS COMING TO MARKETEmerging asset classesBuyer Highest potentialKEYNPL = Non Performing LoansPL = Performing Loans40%NPL –UnsecuredconsumerEmerging asset classesSeller Highest potential29%NPL – CRE9%PL –corporate9%NPL –residentialmortgage7%PL –unsecuredconsumer7%NPL – SME7%PL –residentialmortgage5%PL –transport4%PL –commercialreal estate36%NPL – CRESource: KPMG International, Global Debt Sales Survey 2012Asset classes25%NPL –residentialmortgage25%PL –unsecuredconsumer20% 18%NPL –UnsecuredconsumerPL –commercialreal estateNon-performing unsecured consumer loans are seen as the most likelyasset class to come to market in 2012 by 56 percent of buyers, drivenby the relatively uniform write-off policy for banks throughout Europe.The market has been seeing an increase in the segment in Spain, the UKand Germany, and activity is expected to increase. Under IAS 39, oncean unsecured consumer loan has exceeded 90 days past due, it has tobe fully provided for. As a result, any amount that can be achieved from asale is P&L accretive.“We estimate that there will be a surge of non-performing consumerloans globally as banks look to clear their warehouses. Banks sellingmulti-billion Euro consumer NPL portfolios packaged with their servicingplatforms and sweetened with forward flow contracts will becomeincreasingly common,” says Jonathan Hunt, Associate Director in thePortfolio Solutions Group at KPMG in the UK. In terms of consumer NPLdebt sales, 2011 saw the UK consumer debt purchase market return to itspre-crisis levels at over GBP800 million of investment size, which equatesto approximately GBP8-10 billion of debt face value. Most consumer debt16 GLOBAL DEBT SALES SURVEY © 2012 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity.