Italian NPL Securitisations – Business Plans Evolution
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Summary
This commentary analyses the evolution of Italian nonperforming loan (NPL) servicers´ current collection expectations compared with the executed business plans covering our publicly rated Italian NPL securitisations.
“Collection delays, combined with relatively more aggressive timing and recovery expenses assumptions underlying the underwritten business plan, emphasised the negative variation in terms of collection net present value (NPV) for transactions issued under the first version of the GACS law”, said Clarice Baiocchi, Vice President, European Surveillance at DBRS Morningstar. “Conversely, the outperformance registered by the most recent transactions, in conjunction with longer expected weighted-average life and higher recovery expenses implied in their executed business plans, resulted in positive NPV variations for several transactions issued under the GACS law as amended in March 2019”.