European investor insights 2011

 

During March 2011, we surveyed over 50 investors active in the European loan portfolio market. Those surveyed ranged from investment banks and hedge funds to private equity groups.

 

In this document we set out the highlights of the survey, including, investors’ perspectives on a range of topics including pricing expectations in the next 12 months and investment plans by geography and asset class amongst others.

 

This is one of the most comprehensive surveys that has been carried out seeking to understand the perspectives of those looking to acquire non-core loan portfolios from financial institutions.

 

Spotlight on Ireland

 

The Irish economy agreed a bailout package of €85bn from the European Union and International Monetary Fund, of which €35bn represented direct support to its banking sector.

 

There has been significant market wide commentary and press coverage of what the implications of this support, along with the transfer of loan portfolios into NAMA, may mean for the Irish debt portfolio market going forward.

 

In December 2010, PwC surveyed a number of primary market participants (covering a range of investment banks, private equity and hedge fund groups) on a range of topics with a view to establishing a perspective on investor confidence levels in the Irish loan portfolio market and the implications for potential transactions in 2011.