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Favorable tax and accounting benefits that have driven non-performing loan securitizations in Italy will likely end in May, Moody's Investors Service's office here has reported.
Moody's reported that this development "should not bring an end to (non-performing loan deals)," however it may mean that they will "continue with less regular issuance in the future, utilizing possibly smaller portfolios."
Despite this, overall, Moody's has a "strong growth outlook" for the Italian structured finance market "based on significant securitization volumes, which are driven by new performing asset classes and repeat transactions, increasing investment bank competition entering into the market and the presumed end of the uncertainty regarding usury law issues."
Non-performing loans were the second largest asset class in the Italian structured finance market in 2000, behind collateralized debt ...