Secondary NPL Market

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

Credit Purchasers

• Investment Funds

Issues and Challenges

• Ensuring borrowers are not worse off following the transfer of their Credit Agreement

See Also

• Transferable Contract