NPL&REO News

Month: June 2026

NPL pile

High interest rates fuel Brazil’s distressed debt market

  • 25 June, 2026

Brazil’s prolonged period of high interest rates is driving a sharp increase in distressed debt opportunities, as rising defaults encourage specialist investors to acquire and restructure non-performing assets.

Despite the Central Bank’s recent cut in the Selic rate to 14.25%, economists expect borrowing costs to remain above 14% throughout 2026, while provisions for doubtful loans have reached their highest level on record. Against this backdrop, investment managers including JiveMauá, Mobius Capital, IOX Group and Neo Investimentos are expanding their activities in distressed credit.

NeoFeed, citing data from Uqbar, reports that the number of Brazilian debt recovery FIDCs (Credit Rights Investment Funds) increased from 140 in January 2024 to 157 in April 2026, with combined assets under management of BRL22.5bn.

JiveMauá is preparing a new fundraising round in the second half of the year, targeting several hundred million reais to capitalise on the growing pipeline of distressed credit opportunities. Meanwhile, Mobius Capital is launching its third fund, highlighting a significant increase in deal flow, particularly in agribusiness, where financial pressure is accelerating asset sales and restructuring transactions.

Banks are also stepping up the disposal of non-performing loan (NPL) portfolios as they seek to strengthen their balance sheets. According to NeoFeed, IOX Group estimates that the supply of NPL portfolios has risen by more than 50% in recent months, while Neo Investimentos continues to acquire heavily discounted consumer debt from banks and retailers.

The report concludes that Brazil’s distressed debt market still has considerable room for expansion, with specialist investors expecting opportunities to increase as elevated interest rates continue to weigh on corporate and consumer borrowers.

Original Story: Neofeed | Author: Guilherme Guilherme
Edition and translation: Prime Yield

Mortgage arrears fall while consumer credit defaults edge higher

  • 24 June, 2026

Mortgage credit arrears continued to decline in Portugal in 2025, while consumer credit recorded a slight deterioration, according to the Bank of Portugal’s 2025 Credit Markets Monitoring Report.

In the mortgage market, the default ratio fell further, both in terms of the number of contracts and the outstanding amount. By the end of December 2025, the arrears ratio stood at around 0.1% for owner-occupied housing loans and 0.3% for mortgage credit overall, confirming the continued improvement in the quality of banks’ loan portfolios.

By contrast, consumer credit recorded a modest increase in defaults. As a share of the outstanding amount, the default ratio rose from 1.1% to 1.2%, while, in terms of the number of contracts, it increased from 4.5% to 4.7%.

The figures come in a year marked by a strong recovery in mortgage lending. The total amount of new housing loans rose by 34.9% to €23.4 billion, driven by falling Euribor rates, rising house prices and the impact of the State Guarantee scheme for first-time buyers aged up to 35. The number of new mortgage contracts increased by 11.5% to 133,602, while the average loan amount climbed by 21.1% to €175,141.

At the end of 2025, financial institutions held around 1.33 million mortgage contracts on their balance sheets, representing an outstanding balance of €111.7 billion, up 11.6% from the previous year.

The State Guarantee scheme played a significant role in new lending, accounting for 18.8% of new owner-occupied housing loan contracts and 21.3% of the total amount granted.

Consumer lending also continued to expand during the year. The total amount of new consumer credit increased by 11% compared with 2024, while the average monthly number of contracts rose by 4%. Personal loans and car finance were the main drivers of growth, increasing by 12.7% and 12.2%, respectively, whereas revolving credit posted more modest growth.

Despite the increase in consumer lending, the average Annual Percentage Rate of Charge (APRC) fell to 12.6% at the end of 2025, reversing the upward trend recorded in previous years.

The Bank of Portugal also notes that early repayments and mortgage renegotiations continued to decline. Early repayments fell by 16.2% to 153,092 transactions, following the expiry at the end of 2025 of the temporary suspension of early repayment fees. Mortgage renegotiations dropped by 27%, totalling 45,539 operations.

Original Story: Jornal Económico | Author: Maria Teixeira Alves
Edition and translation: Prime Yield

Servicer-Managed loans in Greece dip to €79.6bn

  • 22 June, 2026

The Bank of Greece has reported a slight decline in the value of loans managed by domestic credit servicing companies and transferred to specialized financial institutions abroad. The total nominal value of these loans, which belong to Greece’s domestic private sector, fell by €118 million during the first quarter of 2026, reaching €79.59 billion at the end of the period, compared with €79.71 billion recorded at the end of the previous quarter. Despite the quarterly reduction, the overall stock of managed loans remained highly stable, hovering close to the €80 billion threshold.

Business loans continued to account for a significant share of the portfolios under management. Their overall nominal value declined to €27.8 billion at the end of the first quarter, down from €27.86 billion three months earlier. Within this category, loans granted to non-financial corporations fell by €40 million, ending the quarter at €27.79 billion. Of this total, €9.64 billion was dedicated to financing small and medium-sized enterprises (SMEs). Meanwhile, loans to other financial institutions represented only a marginal portion of the portfolio, with their nominal value falling to just €1 million by the end of the quarter.

The category covering self-employed professionals, farmers, and sole proprietorships also registered a decline during the period. The nominal value of these loans decreased by €35 million compared to the previous quarter, leaving outstanding managed loans to these borrowers at €10.09 billion at the end of March 2026.

Meanwhile, loans extended to households and private non-profit institutions registered a more moderate decrease. On a quarterly basis, their nominal value fell by €13 million to reach €41.70 billion.

However, the aggregate household figures masked contrasting trends within the segment. Managed consumer loans bucked the downward trend, increasing by €45 million during the quarter to reach a total of €16.242 billion. In contrast, housing loans under management continued to decline, falling by €50 million and ending the first quarter of 2026 at €25.133 billion.

Original Story: Cyprus Mail | Auhor: Kyriacos Nicolaou
Edition: Prime Yield

Image by svklimkin from Pixabay

Spain’s NPL market dominated by small-ticket transactions

  • 19 June, 2026

More than 92% of completed non-performing loan (NPL) transactions in Spain involve tickets below €250,000, highlighting the depth and liquidity of the country’s secondary market for smaller assets.

According to the latest Inmubi Index, which analyses a database of 14,764 active NPLs with a combined gross book value (GBV) of €2.8 billion, the median loan size has increased by 16% since the end of 2025, reaching €104,628. This suggests that lower-value assets are being absorbed more quickly, while investors are increasingly targeting larger and more complex opportunities.

The €100,000–€250,000 segment remains the largest category, representing 36.7% of all active NPL opportunities. In contrast, loans with a nominal value above €1 million account for just 1.5% of the total number of loans but represent 28.4% of the total outstanding value, underscoring their importance for institutional investors.

Madrid has become Spain’s largest NPL market by nominal outstanding balance, with €310.7 million (11.1% of the national total), while Barcelona continues to lead in the number of available assets. Toledo has also emerged as one of the fastest-growing provincial markets.

Overall, the data indicates that Spain’s NPL market remains highly fragmented, with retail investors driving activity in smaller-ticket transactions and institutional investors concentrating on larger, higher-value portfolios.

Original story: EJE Prime
Edition and translation: Prime Yield

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