The deal, which could be closed for between 100 and 150 million, would be a cut compared to the 200 million asked for two years ago.

KKR is moving forward in the process of divesting Hipoges, its subsidiary specialising in the management of real estate assets in Spain. As reported by Bloomberg, the US fund is in exclusive negotiations with Pollen Street Capital, a British investment firm that also controls the servicer Finsolutia.

The sale process, which was reactivated at the end of 2023 with the mandate granted to Alantra, has entered its final phase. Although KKR’s initial objective was to reach a valuation of around 150 million euros, sources quoted by ElConfidencial suggest that the deal could finally close at around 100 million. In any case, both figures would represent a downward adjustment compared to the 200 million requested in a previous sale attempt that did not materialise.

After that failed attempt, Hipoges explored the possibility of acquiring Servihabitat – Lone Star’s real estate subsidiary -, an operation which also failed to come to fruition.

Hipoges’ situation has been conditioned by the recent transfer of assets from Sareb to Entidad Estatal de Suelo (Sepes), with the aim of allocating them to affordable rentals. This government decision directly affects the servicer, which in 2021 was awarded the management of a portfolio valued at €25 billion from the so-called ‘bad bank’.

In addition to Pollen Street, other firms such as doValue (owner of Altamira), J.C. Flowers (through Pepper Advantage) and Arrow Global Group (through Amitra Capital) have also shown interest in the transaction.

With a portfolio of more than €50 billion under management, Hipoges remains one of the leading real estate and financial asset servicing platforms in Spain.

Original Story: Iberian Property | Author: Alexandre
Edition: Prime Yield

The Bank of Spain has warned investors in the real estate market that the risk of default in the sector has increased.

This Monday, the Bank of Spain issued a statement warning of an increase in the risk of loan default by non-financial companies, largely driven by the construction and real estate sectors, as well as other services.

‘There has been a slight increase in the probability of loan defaults in recent quarters,’ the bank said in its biannual report on the financial situation of households and businesses. The report states that the probability of defaulting on bank debt has risen by 39 basis points since the third quarter of 2023, increasing from 2.14% to 2.5%. However, this figure remains 25 basis points below the 2022 average.

Of these 39 basis points, 31 rose in the fourth quarter of last year, while the remaining eight points rose in the first half of 2025. This trend was observed across companies of all sizes.

Nevertheless, the deterioration in credit quality was somewhat more pronounced among large companies, with a 51-basis-point increase in the probability of default from the third quarter of 2024 to reach 2.03%. This figure is approximately 50 basis points below the average for non-financial companies overall, according to Europa Press.

What has happened?

The recent increase in the probability of corporate default has mainly been driven by growth in the construction and real estate sectors, as well as other services. In fact, the average risk of default in these sectors has increased by 44 and 96 basis points respectively since the third quarter of 2024.

Conversely, credit risk has risen slightly in the trade and hospitality sectors, reaching nine and twelve basis points above the third-quarter 2024 probability of default in the first quarter of 2025.

Nevertheless, the Bank of Spain has warned that the data ‘do not indicate a significant increase in tail risk, as the proportion of credit classified in the highest risk category has remained at levels similar to those in 2022’.

Regarding the increase in risk in the construction and real estate sectors, the agency explained that the deterioration is due to ‘an increase in the risk associated with the credit balance, assuming a constant debt structure and borrower composition’.

Original Story: El Economista
Edition and transalation: Prime Yield

Photo: Jorge Fernández Salas at Unsplash

The volume of non-performing loans (NPL) fell to 37.926 billion, which is 10% less than a year earlier.

According to provisional data published by the Bank of Spain, the Spanish banking sector’s NPL ratio continued to fall in the fourth month of the year, reaching 3.18% — its lowest level since October 2008, when it stood at 2.92%.

This was also a decrease compared to March, when the default rate was 3.21%, and April 2024, when NPL accounted for 3.60% of the credit stock.

The volume of doubtful loans fell to €37.926 billion in April, which is €354 million less than in March and €4.22 billion less than in April 2024.

This decline in NPL is accompanied by an increase in the total amount of loans granted in Spain. During April, the total stock of loans granted was €1.193 trillion, representing an increase of around €2 billion compared to March, and around €22 billion compared to April 2024.

Breaking the data down by type of institution, the NPL ratio for all deposit institutions (banks, savings banks, and cooperatives) was 3.08% in April, which is three basis points lower than the previous month and almost 40 basis points lower than in the same period in 2024.

In absolute terms, this type of institution recorded a €351 million decrease in its NPL portfolio, bringing it to €35.201 billion. Compared to April 2024, this is about €3.702 billion lower.

Meanwhile, credit institutions saw their NPL ratio rise to 5.99%, an increase of 20 basis points compared to March, though the year-on-year reduction remains at over one percentage point.

The volume of NPL for this type of institution was €2.538 billion at the end of April, which is €15 million less than the previous month. Compared to the same month last year, the non-performing balance fell by around €527 million.

Finally, according to data from the Bank of Spain, provisions for all credit institutions totalled €28.548 billion in March, which was a decrease of €37 million compared to the previous month. The year-on-year variation showed a reduction of €1.49 billion.

Original Story: Diário Publico | Author: Europa Press
Edition and translation: Prime Yield

AltamarCAM Partners, through its management company Altamar Private Equity SGIIC, has officially launched and registered with the CNMV its new fund of funds for secondary investments: ACP Secondaries 6 FCR, with a target total committed capital of €1.3 billion. This vehicle is part of the global ACP S6 programme, which will also include parallel vehicles and complementary structures managed or advised by the group.

According to data from Lazard, the global volume of transactions in the secondary market reached $150 billion in 2024 and could reach $200 billion in the next two years. The launch of the new fund comes a few months after Altamar announced, last February, the closing of ACP Secondaries 5, after reaching €1.6 billion in committed capital. The firm is currently among the top 20 secondary fund managers worldwide, in a market dominated by Ardian. Altamar already manages more than €20 billion in assets and has set itself the goal of doubling that figure within five years.

ACP Secondaries 6 is designed to invest predominantly in secondary transactions in private equity funds, selecting mainly international underlying funds — buyouts, growth and venture capital — as well as complementary private assets, including infrastructure and distressed debt.

The fund’s investment strategy is based on three pillars: secondary transactions, co-investments and primary (on and opportunistic basis). Regarding the secondary transactions, the vast majority of investments will be made in the secondary market for private equity fund interests, where Altamar has extensive experience. As for co-investments: up to 20% may be allocated to direct co-investments with other funds or strategic partners. Last, a limited and selective exposure to primary transactions is envisaged.

In terms of geographical scope, ACP Secondaries 6 will take a global approach, with a primary focus on Western Europe, the United States and emerging markets, without setting minimum or maximum limits per region.

The fund may invest up to 100% in other venture capital entities in accordance with Law 22/2014 (LECR) or equivalent foreign entities, while also retaining the possibility of co-investing directly in target companies alongside such entities.

ACP Secondaries 6 also contemplates the creation of parallel vehicles to adapt to the regulatory, tax or structural requirements of different types of investors. All investments will be made under substantially equivalent conditions between the main fund and its associated vehicles.

This new strategy reinforces AltamarCAM’s position as one of the key players in the European secondary fund investment market, combining access to quality opportunities with a focus on global diversification and risk control.

Original Story: Capital Riesgo
Edition and translation: Prime Yield

The combination of interest rates being stuck at zero per cent for years and a credit crunch at some point in the cycle created the ideal conditions for financing and investment outside the banking sector to flourish. In fact, the expansion of the non-banking financial sector has far outpaced the growth of the banking business over the last decade in both Spain and Europe. This has not gone unnoticed by regulators, as the phenomenon poses clear challenges to financial stability.

In Spain, this activity already accounts for 33.8% of the financial system’s total assets, although this figure remains far below the 59.9% represented by the non-banking financial sector in the euro area. According to data from the Bank of Spain, at the end of 2024 the total unconsolidated assets of banks and the non-banking financial sector in the domestic market amounted to €3.09 trillion and €1.58 trillion respectively.

In the euro area as a whole, these figures were €38.56 trillion and €57.49 trillion for the banking and non-banking sectors, respectively. However, what is particularly significant about this phenomenon is the pace at which it is advancing. While total assets managed by banks in Spain grew by almost 10% between 2015 and 2024, those channelled through the non-banking sector increased by around 25% — more than double.

According to the latest Financial Stability Report published by the Bank of Spain, the increase was 30% and 40% respectively over the last decade in the eurozone.

The term ‘non-banking’ encompasses ‘shadow banking’, which is not subject to the strict requirements imposed on financial institutions, as well as a long list of regulated and supervised operators, including insurance companies, pension funds, money market and non-money market funds, credit institutions, securitisation funds, and securities companies and agencies. This also covers the activities of venture capital companies, SOCIMIs, payment institutions, appraisers, and instrumental subsidiaries that issue securities.

In its latest annual report for 2024, the ECB acknowledges that the non-banking sector (IFNB) maintained its resilience to market volatility and supported market financing across all credit risk categories in the euro area. However, the report also notes that ‘vulnerabilities related to exposure concentration, liquidity mismatches, and high leverage in certain areas of the investment fund sector continue to be a cause for concern’.

Among the risks it monitors are sharp changes in valuations, which could lead to sudden fund outflows and margin calls, amplifying adverse market dynamics and causing spillover effects to other parts of the financial system.

According to the Financial Times, EU regulators are planning the first stress test to identify vulnerabilities in the non-bank financial system in the event of a worsening market crisis. This would include private equity firms, hedge funds, money market funds, insurers and pension funds, following a similar exercise carried out by the Bank of England last year.

The aim is to examine how a crisis would spread among the different parts of the financial system, and whether it could magnify the impact rather than absorb it.

Original Story: El Economista | Author: Eva Contreras
Edition and translation: Prime Yield

Banco Santander has completed a new hotel financing deal. The bank has awarded Bank of America a portfolio consisting of eight loans to Spanish hotel establishments with a gross value close to €90 million. These loans were previously affected by collection issues or refinancing within the last year, but are now up to date with payments (a type of asset known as ‘reperforming’ in the jargon).

Other investors, such as Cerberus, Golden Tree and Ben Capital, were interested in the portfolio, dubbed Project Cosmos. These large, unique transactions are priced better than portfolios comprising thousands of borrowers, which typically make up mortgage, consumer credit or corporate and SME portfolios, because investors can perform a more detailed analysis of each borrower.

This transaction is similar to last year’s Zeta portfolio, which was a loan portfolio to the hotel sector with a gross nominal value of almost €300 million. According to El Confidencial, JP Morgan acquired this portfolio for around €200 million. The portfolio comprised financing for six hotel clients, with guarantees on 30 hotels.

Unique loans

The sale of unique and individual loans has become increasingly popular in bank debt divestments as a means of alleviating balance sheet provisions, following the major clean-up that took place in the past with the sale of large portfolios of non-performing assets worth billions of dollars.

Overall, banks have adopted this approach to asset disposal to keep default rates under control and transfer the management of these assets to specialists. Banco Santander is one of the most active banks in this area. In recent months, it has finalised transactions such as the Rock portfolio, which involved the acquisition of 90 million euros of secured financing by the KKR fund, and the transfer of 250 million euros of real estate and debt to Fortress and Balbec.

In just over a year, the group has sold portfolios of all kinds, totalling more than 3.2 billion in gross nominal value. At the end of March, its default ratio stood at 2.99%, down from 3.10% a year ago, with provisions covering 65.7% of doubtful financing. The balance of impaired assets stood at €34.992 billion and it had an insolvency fund network worth €22.98 billion.

According to the latest data published at the end of 2024, it also had a portfolio of foreclosed assets amounting to €4.823 billion, down from €5.506 billion the previous year. This figure is reduced to €2.131 billion when the €2.692 billion accumulated in provisions to cover the impairment of their value is deducted.

17.8 billion market

According to Axis Corporate data, the portfolio sales market closed transactions last year for a gross nominal value of €17.86 billion, although only €6.7 billion was for new asset disposals by financial institutions, with the remainder corresponding to transactions between investors despite the assets’ banking origin. One of the largest transactions was carried out by Sareb, with a nominal value of €1.5 billion.

Original Story: El Economista | Author: Eva Contreras
Edition and translation: Prime Yield

According to the Bank of Spain’s Spring 2025 Stability Report, credit institutions (EFCs) slightly reduced their market share in 2024 compared to 2023, despite the expansion of consumer credit.

In 2024, the share of consumer credit provided by these institutions and banks combined was 20.1%, which is half a percentage point lower than in 2023.

The Bank of Spain notes that this decline contrasts with the general upward trend of the last decade, occurring amid an expansion of consumer credit across the entire system. It highlights that these loans grew by 7.3% in the banking sector in 2024, but by only 4.4% in finance companies.

‘This difference in growth between the two groups in 2024 is partly due to some banks absorbing the consumer credit activity previously provided by financial credit institutions that consolidated with them,’ the report notes. A similar effect occurred in 2020, a year impacted by the Covid-19 crisis.

Using data from 2025, the Bank of Spain reports that the downward trend in the share of finance companies continued during the first quarter, standing at 19.2%.

Evolution of non-performing loans

The Bank of Spain also addresses the credit quality of this segment. It notes that the ratio of non-performing loans for finance companies rose slightly to 3.5% in 2024, an increase of 0.1 percentage points. However, this remained below the ratio of 4.3% for banks in the same product segment.

The ratio of consumer loans from financial institutions under special surveillance fell by one percentage point last year, standing at 6.2%, while for banks as a whole it stood at 7.3%.

Finally, in the first quarter of 2025, there was a slight deterioration in credit quality, with increases in the ratios of doubtful loans (up 0.4 points to 3.9%) and special surveillance loans (up 0.5 points to 6.7%) in this credit segment.

Original Story: Valencia Plaza
Edition: Prime Yield
Image by Roman Ivanyshyn from Pixabay

The Bank of Spain has just warned that lenders’ income growth was likely to slow down this year amid lower interest rates and geopolitical risks, and it would need to closely monitor the credit quality of bank loans.

In its latestt semiannual financial stability report, the central bank said the credit quality was now at favourable levels, but it could deteriorate if a potential economic slowdown weighs on borrowers.

The ratio of bad loans has been stable in Spain a little above 3% in late 2024 and early 2025, far below the all time-high of 13.6% in December 2013.

Banks’ net interest income has fallen 3.9% in the first quarter, the central bank said, after rising 22% in 2023 and 8.8% in 2024.

It also said the much-delayed implementation of the Basel III international capital rules remained a priority as it would prevent accumulation of global systemic risks. The rules should be consistent with the planned revision of the European Union’s supervisory framework, it said, to make the framework simpler without undermining the banks’ resilience.

Original Story: Reuters | Author: Jesús Aguado
Edition: Prime Yield
Image by Gundula Vogel from Pixabay

The volume of non-performing loans (NPL) fell to 3.2% in March, the lowest level since November 2008 and four tenths lower than in March 2024.

Spanish bank defaults hit a new low. The volume of NPL stood at 3.21% at the end of March, which is the lowest level since November 2008. At that time, it rose above 3% as a result of the effects of the Lehman Brothers bankruptcy. This marks two consecutive months of decline, following a slight upturn in January when the figure stood at 3.33%. Compared to the same period in 2024, there has been a fall of four tenths of a percentage point, down from 3.61%, according to data from the Bank of Spain (BdE) published on Monday.

This translates into a reduction of over €4 billion to €38.28 billion. This decline is occurring despite an increase in the loan portfolio from €1.151 trilion to €1.159 trilion. However, it should be noted that the default rate for banks, savings banks, and credit cooperatives fell slightly from 3.21% to 3.12%, representing a decrease of €773 million, while the rate for credit institutions remained unchanged.

Specifically, this figure also slowed down, ending March at 5.79%, despite the portfolio increasing from €2.492 billion to €2.553 billion. This is a significant change compared to twelve months ago, when the figure was close to 7%, with 3.04 billion. It should be noted that consumer credit is experiencing a record period of double-digit growth at the start of the year.

In mid-February, the European Commission referred Spain to the Court of Justice of the European Union (CJEU) for failing to transpose the directive on non-performing loans into Spanish law. The directive aims to promote the development of a functioning secondary market for non-performing loans, as well as establishing rules for authorising and supervising loan purchasers and administrators. To this end, harmonised criteria are needed to enable administrators to trade across borders.

The government has acknowledged the reprimand and is stepping up efforts to bring the legislation before the Congress of Deputies as soon as possible. According to La Información, the government has asked the Council of State, its highest advisory body, to expedite the mandatory report so that the text can be presented to the lower house promptly. The executive must gather preliminary reports for this process, which delays its implementation.

Original Story: La información Económica | Author: Carmen Muñoz | Edition and translation: Prime Yield

The non-performing loans (NPL) ratio is back to its lowest level since November 2008. It is now at a level similar to that at the end of 1980, when the BdE’s historical series began.

The NPL ratio of Spanish banks stood at 3.30% at the end of February, slightly below the 3.33% recorded in January, according to preliminary data published by the Bank of Spain.

This brings the NPL ratio back to its lowest level since November 2008, when it stood at 3.21%, after rising to 3.33% in January. It is also 30 basis points lower than the ratio recorded in February 2024, when it stood at 3.62%. The current level is similar to that recorded at the end of 1980, when the Financial Supervisory Authority’s historical series began.

In terms of the volume of NPL, they fell by 364 million euros in February to 38,995 million euros, while the year-on-year reduction was 3,258 million euros.

Moreover, the reduction in the NPL ratio was also supported by an increase in the loan portfolio: at the end of February the stock stood at 1,183 billion euros, an increase of some 1,560 million euros compared with January. On the other hand, compared with February 2024, the volume of bank loans had increased by some 16.6 billion euro.

The data broken down by type of institution show that the ratio of doubtful assets of all deposit-taking institutions (banks, savings banks and cooperative societies) ended February at 3.21%, four basis points lower than in the previous month and 29 basis points lower than in the same period of 2024.

In absolute terms, this type of institution recorded a decrease of 343 million euro in its doubtful assets portfolio to 36,325 million euro. Compared with February 2024, the figure is around 2,922 million lower.

The NPL ratio of credit institutions increased slightly to 5.86%, two basis points more than in January. On a year-on-year basis, it fell by 73 basis points.

The volume of doubtful loans of this type of institution at the end of February was 2,492 million euro, eight million less than the monthly variation, while the doubtful balance was reduced by 328 million euro compared to the same month of the previous year.

Finally, according to the Bank of Spain, provisions for all credit institutions amounted to 28,828 million, 128 million less than in January, while the year-on-year variation showed a reduction of 1,203 million.

Original Story: Idealista News | Author: Europa Press / Ana P.Alarcos
Edition and translation: Prime Yield

Cajamar continues to clean up its non-performing assets. The bank has transferred a new portfolio of foreclosed assets, mainly residential, to the KKR fund. The assets, included in the so-called Eros II project and sold to the fund, have a gross value of 14.2 million euros.

In recent months, the company has also placed the Atenea II portfolio with specialists Goriz Advisor and Gannet. With a volume of 17.5 million euros, the latter portfolio consisted of 200 NPLs (non-performing loans) secured by mortgages.

These are very small operations compared to those transferred in recent years, but they continue to improve the quality of the balance sheet and place the management of non-performing assets in the hands of specialists.

The institution ended the year with 1,318.8 million in non-performing assets, having reduced its exposure to foreclosed assets by 31.5% (527.81 million) and its exposure to non-performing loans to 1.93%, one of the lowest in the sector. Its exposure to doubtful loans fell to 791.05 million and it maintains provisions covering 72% of these risks.

Like the rest of the banking sector, the bank frequently resorts to the sale of non-performing assets. Recent transactions include the transfer to Balbec Capital of 136 million in healthy and non-performing loans in the Utrecht project.

Cajamar has also concluded transactions with Waterfall Asset Management, involving the sale of doubtful unsecured loans; with LC ASSET 1, Lindorff, Bain Capital, Link Financial and GCBE Advanced Solutions (formerly Gescobro), among others.

Original Story: El Economista | Author: Eva Contreras
Edition and translation: Prime Yield

KKR & Co. Inc. is in advanced talks to sell its Spanish real estate management company Hipo to Pollen Street Group Ltd., according to people with knowledge of the matter.

The discussions are ongoing and KKR could still decide not to pursue the deal or select another people added, asking not to be named discussing private information.

Original Story: Bloomberg | Author: Jorge Zuloaga
Edition: Prime Yield

Last year, Spanish banks sold portfolios of toxic assets for a total value of €6.7 billion, including a portfolio of €1.5 billion from Sareb, according to a compilation by Axis Corporate (Accenture).

If we add the transactions that took place in the secondary market between the private equity firms themselves, the amount rises to €17.86 billion, a volume similar to that of 2023, but half the historical record of 2018. At the same time, Ana Botín suddenly transferred all of Popular’s real estate risk (€30 billion) to Blackstone.

Santander was the most active bank last year, with seven transactions of toxic asset portfolios for a total of €1.8 billion. CaixaBank is next in the ranking, having transferred batches of non-performing loans and real estate for a total of €973 million.

Sabadell follows with €938 million.

Sareb, the vehicle in which the toxic assets of the nine savings banks bailed out during the financial crisis are parked, transferred 1.5 billion in unpaid loans to Axactor in one fell swoop.

According to Accenture, this year will see an acceleration in the sale of real estate risk assets by Sareb, as its legal dissolution is imminent. This is scheduled for 2027, although the government has the power to extend the deadline.

The size of portfolios changing hands has fallen sharply in recent years. The size of 78% of portfolios is less than €500 million.

Going forward, Accenture predicts that most buyout activity will focus on unsecured and refinanced loans.

€73.5 billion of NPL to be unwound

The clean-up of Spanish banks’ real estate assets is well underway after almost twenty years. But there are still €73.5 billion worth of toxic assets to be unwound.

Santander is the bank with the largest real estate holdings on its balance sheet: €36 billion. It is followed by BBVA with €15.327 billion. And CaixaBank with 10.352 billion.

Unicaja made a clean sweep last year and its stock of toxic assets fell by 14%. Its risk volume (€1.348 billion) is similar to that of Bankinter, which did not lend to property developers in the years before the property bubble.

The private equity firms Cerberus, Blackstone, Lone Star and Axactor are the ones that have fattened their portfolios with toxic assets from Spanish banks over the last decade.

Between the four of them, they have acquired €97.35 billion of real estate risk owned by the banks or bought back from other private equity firms. This is half of the €207.52 billion that have changed hands, according to Axis Corporate data.

The real estate legacy still to be liquidated is now reduced and so well provisioned that portfolio sales no longer cause losses in the income statement.

Original Story: Expansión | Author: R.Lander
Edition and translation: Prime Yield

Together with KKR, its reference shareholder, Hipoges has created a vehicle to invest in mortgage debt. Starting with an initial endowment of €100 million, it will focus on the acquisition of small portfolios of non-performing loans (NPL) and real estate owned (REO) in Spain and Portugal through transactions of between €5 million and €25 million. The idea began to take shape at the end of 2023, crystallised last summer with the assembly of the corporate structure to complete its first purchase, and since September has already completed four transactions, reveals to elEconomista.es Pelayo Puche, Executive Director Advisory of Hipoges and promoter of the vehicle.

The fund, called PSD Lux, ‘is the first company that Hipoges has created specifically to actively buy portfolios’, he explains. It is common for servicers to co-invest with their clients in order to ‘align interests’, and Hipoges has done some similar deals in the past, although they are almost exceptional and for very limited amounts. To date, it has not actively sought to acquire portfolios. Its plan for 2025 is to use the expertise it has acquired over the years in managing large portfolios in the banking sector to focus on developing business with financial institutions.

The rationale behind this commitment is that it sees an opportunity in “three very clear needs” in the market. Firstly, it wants to offer an additional service to bank clients for whom it already manages distressed portfolios: “Our usual clients have a portfolio size above which they do not pay attention because it is not big enough and the work involved in valuing a small portfolio is practically the same as that of a large one,” says Puche. In other words, there are neglected portfolios that he wants to pay attention to and thus strengthen the relationship with existing or new clients.

On the other hand, he sees opportunities in the secondary market, buying portfolios that the banks have sold long ago and which, after being managed for five, six or eight years, “are also starting to get too small and the owners, the funds that bought them at the time, are starting to stop paying attention to them because they are too small”. These are the so-called ‘tail’ portfolios, and his vision is twofold: to acquire such portfolios from client funds, so that ‘they keep the management in Hipoges’, and to ‘get a bit more assets under management’ by bidding for similar portfolios that the funds have with other servicers. Since the launch of the new vehicle, the company has closed four deals on bank assets that had not previously come to market, all with Spanish companies. Closing four will take us to 40 since September,” he says.

Movements in the sector

 The launch of the vehicle comes at a time when servicers are reinforcing or redefining their strategies in order to improve their positioning, also in the midst of the concentration process that the sector has been undergoing for several years and which could possibly include KKR’s exit from Hipoges. According to some media reports, the US giant has sounded out the appetite for the servicer, attracting the interest of funds such as DoValue, Arrow Global Group, J.C. Flowers & Co and Pollen Street Group. KKR bought 84% of Hipoges in 2017, with the rest of the capital in the hands of several of the servicer’s executives. An exit, which does not necessarily have to be completed, would be part of the natural turnover of assets in private equity firms. The company declined to comment on the hypothetical transaction.

The alliance with KKR confirms the good understanding with the shareholder, who did not want to abandon the project, while Hipoges continues its strategy of greater diversification in order to strengthen its market position and reduce its dependence on the core business of maintenance, with which it started operations in Spain in 2008. In fact, the creation of the fund is an initiative of Hipoges, whose teams will be even more responsible for the assets it incorporates. The paradigm shift with PSD is that they give us much more independence than we would have in a large portfolio. They put in almost all the capital, but they do less work than they would in a normal portfolio, they delegate more to the Advisory and Hipoges team,’ says Puche.

The €100 million in the vehicle is a start-up budget. The idea is to try to invest €100 million in the first year or two, and after that we will see how it goes and KKR will decide whether to give another 100 million or what to do,’ he says. The only asset class a priori ruled out for the fund is unsecured or consumer credit. Its preference is for assets that are in line with Hipoges’ core business, which is very much focused on residential mortgages for individuals, as well as corporate loans, especially to developers, and real estate. In terms of financing, the fund’s appetite includes both NPLs and refinancing or current loans, even if they have had a certain incidence in the last year (the so-called RPL or reperforming loans).

Original Story: El Economista | Author: Eva Contreras
Edition and translation: Prime Yield

Sareb has decided to suspend its housing sales activities for the next few weeks in view of the future transfer of its assets to the new public housing company to be created on the basis of the existing Entidad Pública Empresarial de Suelo (Sepes). According to El Economista, this decision will have a clear impact on the administrators Hipoges and Anticipa/Aliseda, who are in charge of selling these assets, which form part of the portfolio of the so-called bad bank, and whose mandate ends in August.

According to the newspaper, in the next few days Sareb’s board of directors will meet and a shareholders’ meeting will be convened to approve the cessation of commercial activity in the residential sector and to begin a period of analysis to define the scope of the assets to be transferred to the new public entity.

However, it seems that not all of the housing portfolios will be transferred, as initially announced, as it will be studied which properties make sense for social rental use, as the public company will give them.

Although most of Sareb’s portfolio is perfectly suitable for conversion to social rental housing, ‘there are specific developments or unique assets that, because of their location or nature, would not make sense to transfer to the new entity’, the sector explains.

Sareb itself must have a minimum level of income to keep its machinery running, not only for its own survival but also to be able to provide the new public entity with more housing. However, it is not clear to anyone that this slowdown in sales will have an impact on the business of the service providers responsible for this mission.

In 2022, the award of management and marketing services will swell the portfolio of properties and loans to around 25.3 billion euros.

Original Story: El Economista | Author: Alba Brualla
Edition and translation: Prime Yield

The Spanish banks’ non-performing loan (NPL) ratio stood at 3.32% at the end of December, the lowest level since November 2008 when it was 3.21%, according to preliminary data published by the Bank of Spain.

This is the fourth consecutive monthly fall: compared with November, it fell by six basis points, while compared with December 20-23, it fell by 22 basis points.

In terms of the volume of NPL, it fell to EUR 39,358 million in December, EUR 939 million less than in the previous month. Compared to December 2023, the reduction is  EUR 2,510 million.

In addition, the total stock of loans has also decreased: at the end of December the ‘stock’ stood at EUR 1.18 trillion, a decrease of around EUR 7,414 million compared with November. On the other hand, compared with December 2023, the volume of bank loans increased by EUR 4 025 million.

The data broken down by type of institution show that the ratio of doubtful assets of all deposit-taking institutions (banks, savings banks and cooperative societies) closed December at 3.24%, two basis points lower than in November and 20 points lower than in the same month of 2023.

For the twelfth month, the portfolio of doubtful assets of this type of institution decreased by EUR 612 million to EUR 36,599 million. Compared with December 2023, this figure is around EUR 2,169 million lower. For their part, financial institutions saw their NPL ratio fall to 5.65% in December, more than one percentage point lower than in November. Compared with December 2023, it fell by 68 basis points.

In absolute terms, the volume of doubtful loans of this type of institution was EUR 2,565 million at the end of December, EUR 344 million less than in November. Compared to the same month of the previous year, the doubtful balance was reduced by EUR 346 million.

According to the Bank of Spain, provisions for all credit institutions stood at EUR 28,902 million in November, a reduction of EUR 491 million on the previous month. Compared to the previous year, provisions decreased by EUR 968 million.

Original Story: Europa Press
Edition and translation: Prime Yield

The ratio of doubtful assets of financial credit institutions (EFCs), which specialise in consumer credit, closed below 6% in 2024, returning to pre-crisis lows, according to preliminary data published by the Bank of Spain.

Specifically, SCIs closed with a ratio of 5.65%, the lowest level since January 2020, according to the historical series published by the regulator. Compared with November, the fall is 1.07 percentage points, while compared with December 2024, the reduction is 68 basis points.

In terms of volume, the stock of doubtful assets of SCIs amounted to EUR 2,565 million at the end of December, EUR 344 million less than in November. Compared with the same month last year, the stock of doubtful assets was reduced by EUR 346 million.

The total amount of loans granted by financial institutions at the end of December was EUR 45,369 million, EUR 2,086 million more than in November. Compared with the same month in 2023, however, the volume of loans fell by EUR 601 million.

Lastly, the provisions of the SCIs to cover the doubtful balance stood at  EUR 1,776 million in December, EUR 83 million less than in the previous month and EUR 57 million less than the reserves in December 2023.

Original Story: Europa Press
Edition and translation: Prime Yield

The Council of Ministers approved the Credit Purchasers Act, which transposes the European Directive on the same subject and amends the Consumer Credit Contracts Act and the Real Estate Credit Contracts Act. The aim is to regulate the market for the purchase and sale of non-performing loans and to introduce certain obligations for mortgage and consumer credit borrowers.

Specifically, the bill regulates the purchase and sale of non-performing loans (NPL) granted by credit institutions and financial credit institutions, establishing common rules with the rest of the European Union.

The next step, once approved by the government, will be to send it to the Congress of Deputies for parliamentary processing.

Firstly, it regulates the activity of doubtful credit management, which consists of the collection or renegotiation of this type of credit, which becomes a reserved activity and requires prior authorisation from the Bank of Spain. In order to obtain this authorisation, the law establishes the need to have an “adequate” internal credit management system and a policy that “guarantees the protection and fair treatment of borrowers”.

It also regulates the purchase and sale of NPL, ensuring that the conditions and rights of borrowers are maintained and transferring to the purchaser of the loans the obligations of transparency, protection and information, including compliance with the codes of good practice to which the original creditor has subscribed.

The draft regulation sets out additional safeguards for the protection of borrowers, requiring both purchasers and servicers to provide “fair treatment and adequate information”, as well as an “adequate” borrower assistance and out-of-court redress service.

In order to ensure compliance with these obligations, the Banco de España will supervise the administrators, as well as the compliance of credit purchasers with these obligations, and will establish the corresponding system of infringements and sanctions.

Real estate and consumer credit

The sectoral regulations on consumer credit and real estate credit will also be amended to introduce the obligation for creditors to have a debt renegotiation policy. This means that creditors will have to offer their customers measures aimed at reaching renegotiation agreements before taking legal action or demanding full payment of the debt.

The regulation establishes special conditions for non-mortgage debtors in a situation of economic vulnerability who are recipients of the minimum subsistence income. In these cases, the lender who sells the doubtful loan to a third party must offer the borrower a payment plan in order to “protect the most indebted groups without undermining the payment culture”.

The Consumer Credit Law also introduces a limit on the amount of default interest that can be charged in the event of non-payment by the consumer, setting it at a maximum of the sum of ordinary interest plus three percentage points.

In addition, charges for the recovery of overdue amounts must be in line with the costs actually borne by the creditor and, in any event, after prior notification to the consumer, indicating the outstanding amount, the time available to settle the situation and the amount to be paid if the situation is not settled.

The cases of modification of the interest rate in contracts of indefinite duration (as in the case of revolving cards) are defined, allowing the customer not to accept the increases or to cancel the contract, in which case the customer may repay the outstanding debt in accordance with the repayment conditions and the interest rate in force at the time of the notification, at no additional cost to the borrower.

Finally, it clarifies the conditions of compensation for early repayment in the case of financing linked to the purchase of goods or services.

Original Story: MSN News Author: Europa Press
Edition and translation: Prime Yield

Cajamar has completed a new sale of a an NPL portfolio. The company has placed the EUR 17.5 million Atenea II portfolio with specialists Goriz Advisor and Gannet. According to market sources, the portfolio consists of 200 NPL (non-performing loans) with mortgage guarantees.

The bank, like most banks, has been removing non-performing assets from its balance sheet for years in favour of funds and specialist investors in order to improve its risk profile. Until last year, it also had an agreement with Haya Real Estate, the servicer acquired by Intrum, for the management of its assets, but when it expired it decided not to renew it in order to deal directly and internally with its own resources.

Original Story: El Economista | Author: Eva Contreras
Edition and Translation: Prime Yield

Santander continues to reduce its exposure to non-performing assets. According to market sources, the bank has sold a EUR 90 million portfolio of secured non-performing loans (NPL) to KKR as part of the Project Rock transaction.

This is not the first time it has placed assets with the fund. In 2023, KKR acquired a portfolio of nearly €200 million of foreclosed real estate (REO) that the Cantabrian bank had put on the market in the so-called Frankel transaction.

The bank has remained in the market as one of the most active and recurrent operators in this type of sale, closing deals with investors such as Fortress, PRA Iberia, Cerberus and Axactor, among others.

In recent months, it has completed the sale of around EUR 330 million in unsecured loans and other secured financing operations in the Swing project; the sale to Fortress of the Churchill portfolio, with a gross nominal value of EUR 200 million; and the sale to Balbec Capital of the Newman portfolio, which in its case consisted of real estate assets, secured loans and a portfolio of unsecured loans from its subsidiary Santander Consumer Finance.

Original Story: El Economista Author: Eva Contreras
Edition and translation: Prime Yield