Investors Expect Performing NPL Market This Year via GlobeSt.com

The fourth time—or, in this case, fourth year—looks like the charm for investors hoping to acquire some of the billions of dollars in non-performing loans. While they’ve held out such hopes since 2009, when Ernst & Young began its Real Estate Nonperforming Loan Investor Survey, the volume of maturing commercial real estate debt has begun at last to spur banks to step up their efforts at getting the NPLs off their books, even as their profits have increased. That prompted investors to increase their allocations for buying distressed debt in 2011, and their success rate at buying the loans also increased, suggesting more price agreement.

In fact, in this election year, another figure of speech is apt: four more years. Or, more precisely, between two and four more years. That’s how long 82% of investors expect the NPL market to remain active, according to the 2012 edition of E&Y’s survey, released late last week.

Read more...GlobeSt.com - Investors Expect Performing NPL Market This Year - Daily News Article