Is Private Equity Getting Pickier on NPLs?
http://www.nationalmortgagenews.com/nmn_features/private-equity-pickier-1024069-1.html
Tuesday, March 29, 2011
By Paul Muolo
Smaller, thinly capitalized investors in nonperforming mortgages could face liquidity concerns in the coming months as private equity investors begin to re-examine their commitment to the business while bolting for higher returns elsewhere.
Showing posts with label NPL. Show all posts
Showing posts with label NPL. Show all posts
Tuesday, March 29, 2011
Saturday, March 19, 2011
MSN: Is the Nonperforming Loan Market Now a Bust?
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 can make 20% by trading currency," an NPL player told me. In other words, it's all about "the trade"…
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 can make 20% by trading currency," an NPL player told me. In other words, it's all about "the trade"…
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