• 22-MAY-2012

  • SOURCE: PricewaterhouseCoopers LLP

PwC Survey - Investor Appetite to Acquire non-Core Loan Assets from European Banks Continues to Grow

Investors expect the sale of European loan portfolios to peak in 2013, as banks begin to plan their refinancing of the liquidity injections received from the European Central Bank (ECB), according to a new survey from PwC. PwC surveyed more than 50 major investors active in the European loan portfolio market to understand the perspectives of those looking to acquire non-core loan portfolios from financial institutions. It is reported that investors have accumulated nearly €60 billion to invest in non-core European loan assets. It reckons that portfolios with a face value of €50 billion are expected to change hands this year. Among the investigated investors, less than one in five think debt will be more difficult to raise. Besides, leverage remains significant in enabling transactions to be completed by increasing prices and liquidity in the market.