NPL Markets

“Our platform offers a unique, integrated solution that supports clients throughout the entire decision-making process around credit portfolios, from valuation and monitoring to portfolio trading,” says Rodolfo Diotallevi, Chief Business Officer at NPL Markets.

Leveraging on unified, comprehensive credit and risk management software, NPL Markets covers the full cycle of performing and non-performing loans. It provides adaptable cloud-based modules that fuse innovative tools that help banks and asset managers navigate the intricate landscape of illiquid credit markets. Combining multiple applications like data preparation, valuation and analytics, marketplace and reporting on a single platform ensures a robust and transparent ecosystem.

The firm’s platform effectively supports portfolio data preparation and data quality enhancement and addresses the challenges of sellers’ low-quality data, which typically hamper decision-making. To this end the Data Preparation tool allows unformatted data to be aligned with the industry templates, ensuring consistency checks, identifying missing data points and establishing correlations between loans and underlying assets. The platform’s data preparation software also employs advanced technology and artificial intelligence (AI) to transform, map and standardise loan data into over 46 templates, improving data quality and reliability.

Besides low-quality data, another challenge that prevails in the market is appropriately valuing illiquid assets accurately. To overcome this, NPL Markets provides valuation and analytics tools that offer pricing models to support asset valuation for both sellers and investors to facilitate transactions. Moreover, credit risk monitoring tools help assess the impact on balance sheets when selling positions while considering regulatory rules on capital provisioning. This is supported by NPL Markets DataHub, which offers extensive independent market metrics to run forward-looking scenario analysis and stress tests.

NPL Markets offers a centralised marketplace function in its platform, which is integrated with data preparation and analytics to efficiently facilitate deal management. Sellers can upload transactions on the platform and gain access to a diverse pool of institutional investors across jurisdictions based on their preferences, facilitating investor diversification. The platform streamlines legal documentation negotiation processes while providing options for different sale processes, such as tender offers, competitive auctions or bilateral transactions. It also helps due diligence via integrated virtual data rooms, ensuring efficient analysis of assets within the marketplace. All communication occurs in a single location, simplifying interactions between all the stakeholders involved in the transaction process, such as investors, sellers, lawyers, servicing companies and accountants.
Another noteworthy feature of the platform is the reporting application, which comes into use after the execution of the transaction. This tool enables dynamic monitoring of loan portfolio data over time and the analysis of loans, securitisations, and credit funds with a single click. It also helps in the historical evaluation of collections, cash flow monitoring, and period-on-period comparisons to comprehend how portfolios are impacted under different stress scenarios. This application also allows regulatory reporting, across many templates and jurisdictions

In essence, the cloud platform justifies its modular label not only by providing the aforementioned tools but also by ensuring they are flexible. NPL Markets recognizes every client’s unique requirements, be it a seller or an investor. It subsequently allows clients to employ whichever tool is necessary at any stage of their businesses.

Several client success stories illustrate NPL Market’s effectiveness. One such client is a seller who wanted to explore the possibility of selling their primary Italian unsecured retail loan portfolio. The firm conducted a competitive 1-stage sale, invited over ten investors and monitored their transaction progress. Consequently, the seller received binding offers within merely eight weeks from when the process started. The higher overall binding offer directly resulted in running a competitive process through NPL Market’s marketplace tool and assigning different sub-portfolios to different investors. Employing advisory and marketplace tools could ensure significant savings in money and time while contributing to a better price outcome.

NPL Markets embodies the characteristics of a top-tier credit portfolio management company in the illiquid credit market. With approximately 850 investors on board from over 27 jurisdictions, the firm effortlessly provides its clients with better opportunities, positioning itself as a comprehensive one-stop solution in the industry.