Although dealing with distressed debt and non-performing
loans (NPLs) has always been part of the banking business, the
large amount of distressed mortgage-backed debt in the hands of
financial institutions in Spain is absorbing significant
resources, including capital, people and management time.
Such circumstances, combined with the state of the
real-estate sector in Spain, have meant that many Spanish or
foreign financial institutions with significant interests in
Spain might be ready to sell their mortgage-backed loan
portfolios (performing and non-performing). However, the
M&A market of mortgage-backed loans is not for the time
being as busy in Spain as it is in the UK and other EU markets,
or as might be expected in light of the current economic
situation.
Although some might think that this shortage of transactions
might be due to the legal framework affecting these
transactions in Spain, an analysis of other applicable laws,
such as English...