Difference between revisions of "Secondary NPL Market"
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== Market Participants == | == Market Participants == | ||
| + | Due to the sensitive nature of credit agreements, participants are typically subject to authorisation and supervision similarly to other sub-domains of the financial / credit system | ||
=== Credit Sellers === | === Credit Sellers === | ||
| + | * Originating Banks | ||
| + | * Other Financial Institutions granting credit | ||
| + | * Other Business entities granting credit | ||
| + | * Investment Funds | ||
=== Credit Purchasers === | === Credit Purchasers === | ||
* Investment Funds | * Investment Funds | ||
| + | * Other financial institutions | ||
== Issues and Challenges == | == Issues and Challenges == | ||
Revision as of 12:35, 9 June 2021
Contents
Definition
Secondary NPL Market is a Secondary Market for non-performing loans and other credit agreements that are not being fulfilled as has been contractually stipulated.
Function
In a secondary NPL market third parties (the first and second parties being the original borrower and lender) are able to buy non-performing obligations.
Market Participants
Due to the sensitive nature of credit agreements, participants are typically subject to authorisation and supervision similarly to other sub-domains of the financial / credit system
Credit Sellers
- Originating Banks
- Other Financial Institutions granting credit
- Other Business entities granting credit
- Investment Funds
Credit Purchasers
- Investment Funds
- Other financial institutions
Issues and Challenges
- Ensuring borrowers are not worse off following the transfer of their Credit Agreement
