Latest Trends in the NPE Sector

Exclusive Interview with Andrea Clamer, Head of Distressed Credit Investment and Servicing at Illimity Bank

In a world that used to be fast paced, the slowdown caused by the pandemic is likely to spur default rates of existing performing or quasi-performing exposures. This trend will pose challenges and threats to originators, investors, and servicers.

Several initiatives have been taken at the EU and single Member State’s level to ease financial pressure on business and households. In December 2020, for instance, the European Commission issued its Action Plan devising its NPL strategy and identifying the following four main goals:

  • further develop secondary markets for distressed assets

  • reform the EU’s corporate insolvency and debt recovery legislation, seeking convergence of the various insolvency frameworks across the EU

  • support the establishment and cooperation of national asset management companies (AMCs) at the EU level

  • implement precautionary public support measures, where needed, to ensure the continued funding of the real economy under the EU’s Bank Recovery and Resolution Directive and State aid frameworks

If the public sector is on the case, investors and servicers are also moving quickly to readjust their NPL business models considering the new economic landscape. Creativity, multidisciplinary approaches, and flexible strategies seem to be the hallmarks of this new phase of their operations.

We reached out to Andrea Clamer at Illimity Bank, one of the leaders in the field of Italian NPLs, to learn more about how the NPE operations of the bank have evolved to be keep up with the new challenges.

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