This is one of the main conclusions revealed by Prime Yield in its most recent study “Investing in NPL in Iberia 2018: a two way opportunity market”, presented at NPL Iberia Conference, which assesses the NPL Iberian Market’s potential. These two countries are still highly penalized by Non-Performing Loans, having one of the highest rates (11.7% in Portugal) and one of the highest stocks (74.800 million euro).
These are currently, two of the main destinations for investors, and Prime Yield predicts that, in Iberia alone, the portfolio transactions will reach 94.000 million euro this year. The sale of this type of portfolios should grow at an average pace of 15% to 20% between 2018 and 2019 in Portugal, during this period transactions should reach between 6.500 and 7.000 million euro, 3.500 million of which already this year. In Spain, the estimate is that the average investment per portfolio, which right now is between 1.000 million and 1.500 million, compared to the 400 to 800 million traded before, will grow.
«The NPL market in Iberia presents two types of opportunity which are very interesting for investors, with different stages of development, returns and bidding competitiveness. While Spain is a more mature market, where the portfolio transition for this type of assets will keep growing, Portugal has been emerging in Europe in a slower fashion, but is now ready to take off. And with the growing interest from global investors both in this type of assets and in Southern Europe, 2018 might bring almost 94.000 million in NPL sales to Iberia. And next year we should witness the acceleration both in pace and volume of traded portfolios», comments Nelson Rêgo, CEO of Prime Yield.