Italian NPL Securitisations Performance – Q1 2024 Update

This commentary analyses the performance of Italian nonperforming loan (NPL) transactions publicly rated by DBRS Morningstar from different angles. It is based on the latest available information provided by the servicers and identifies key trends in the Italian NPL market.

“Data confirm that recovery ratios have generally continued to deteriorate for transactions issued under the first version of the GACS law (GACS 1.0), although at a slower pace compared with previous years”, said Clarice Baiocchi, Vice President, European Surveillance at DBRS Morningstar. “Meanwhile, transactions issued under the GACS law as amended in March 2019 (GACS 2.0) continued to display stronger performances as the executed business plan recovery curves ramp up and the pace of collections stabilises”.