The reason for the fall in month-on-month collections between July and August each year is Italy’s nationwide summer vacation, when business activity drops significantly and court activity is limited to the most urgent proceedings. Once again, both factors affected the sector’s performance – regardless of servicers’ recovery strategies.

Collections in August 2022 were 61% higher than August 2021 volumes, however, due mainly to high proceeds from note sales, which accounted for 41% of total collections – above judicial (39%) and extra-judicial (20%) recoveries. Indeed, August 2022 saw note sales proceeds surpass proceeds from judicial strategies in volume terms for the first time. The sale of EUR 42m of credit notes in the Leviticus transaction represented almost all note sales for the universe of 20 transactions considered for the month in question.

Total gross proceeds of pre-Covid originated transactions

Source: Scope calculations on servicing reports

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