Sales of non-performing notes continue to heat up. In fact, in the third quarter more than 600 banks sold nonaccrual assets.
For the uninitiated, ‘nonaccrual assets’ are loans where there’s no longer hope that the loan will be repaid according to terms. NPNs, NPLs, “Non-Performing Notes”, etc… what you’re talking about most of the time is ‘Nonaccrual’.
I get asked A LOT if banks are really selling small packages of notes or individual notes. The answer according to the numbers which are coming direct from the banks is clearly ‘YES’ and they’re doing so with increased frequency.
What’s been your experience in the field? Are you seeing sales or making them happen? If so, what has been your smallest deal? Your biggest? What kinds of assets are you seeing banks sell. Let us know in the comments below. Your peers are dying to know.