Is the Nonperforming Loan Market Now a Bust? Friday, March 18, 2011 By Paul Muolo Depending on who you talk to, the 'current' nonperforming loan market is either a bust or a great opportunity – or perhaps something in between. That covers all the scenarios, really, but I know of at least two firms that have exited the business over the past six months, with one more on the way. Then there are the recent layoffs at Kondaur Capital. Kondaur chief Jon Daurio recently told us that after the staff cuts his business was once again cash flow positive. That's good news, but the 'troubles' I've been hearing about of late center on mostly smaller players. One investor told me that certain private equity and hedge funds are beginning to turn up their noses on the NPL space – but not because the profits are poor. "You can get an IRR [internal rate of return] of 13% on this business still, but some of these funds are saying that's not good enough anymore – they...