TUESDAY, 30/05/2023 - Scope Ratings GmbH

Italian NPL collections: fewer DPOs, note sales pull down Q1 volumes

March Italian NPL collections increased by 33% on the month but were 23% and 28% lower than March 2021 and 2022, respectively. Meanwhile, first quarter 2023 volumes were 16% below the average of the same period of the previous two years.

The quarterly difference is mainly attributable to much lower DPOs and note sales (-26% and -77%) relative to the first quarter of 2021 and 2022. Note sales fell particularly sharply, as higher interest rates have triggered much lower bid prices, widening the gap to the reserve prices that sellers were willing to accept.

Total gross proceeds of pre-Covid originated transactions

Source: Scope calculations on servicing reports

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