Partner Richard Hanson and associates Oindrila Bhowmik and Gulmin Cosar co-authored a Law360 article discussing the United Kingdom’s Financial Conduct Authority and Prudential Regulation Authority’s new securitization rules, which include provisions relating to nonperforming loan (NPL) securitizations.
“Given the success of European and UK banks in reducing their NPL ratios and the growth of the secondary NPL market—aided by the legislative and regulatory changes highlighted above — we may see more reperforming loan securitizations playing a part in the European securitization market going forward,” the authors write. “And perhaps the volume of reperforming loan securitization issuance overtaking that of NPL securitization.”