Nonperforming Loans

  • Experienced investor considered ‘Individual stories’ and reached yet high yields Neubiberg, 05.10.2011. The business is not really known. And yet a billion dollar market, in which many German and international banks move. The speech is of non-performing loans (NPL’s), so performance-impaired loans that make creating banks for many years. They want banks as quickly as possible from their balance sheets, write it off, and then offer them in a particular market segment to extremely favourable conditions. “The buyers of these loans were usually called” locusts in the past”, the tried, the best to make the respective treaties. This picture has changed dramatically, because at least we try to fulfil our social obligation and socially responsible manner to resolve the contracts”, explains Karsten Dairek Keune as Managing Director of NPL investor GmbH & co. First KG.

    Still, high margins are in this business to achieve the implementation of an as Allow investment to refinance. The range of funds that is recently in the placement, has a volume of 25 million euro. A participation is possible from 10,000 euros plus five per cent premium. Placement should be completed at the end of next year at the latest. The variable and selectable Fund maturities are particularly interesting. These are between four and ten years after closure. We are searching for the demand of many customers do the a reasonable investment horizon,”, explains Managing Director of NPL Keune.

    As more funds, a private placement and a savings fund are tight before the completion and approval. Basically sees the Fund concept of NPL investor GmbH & co. First KG the reinvestment of profits before. However, it is possible to remove the 40 percent of the profits. Internally, the Fund management calculated depending on of the runtimes with yields between 10 and 15 percent. A very conservative approach, which leaves room for us to the top, “where we look largely to secured loans focus”, Keune said. This refers to such loans, which are secured, so exercised mainly with real estate. While a win situation arises from the resolution of performance-impaired loans in real implementation for all involved. Banks get more leeway on refinancing (keyword: Basel 3) through the sale. The debtor through a partially remaining debts the chance unencumbered to start, then there are no further claims. And the Fund has the opportunity to achieve the corresponding profit for investors at reasonable purchase prices. The management places special importance on the equitable resolution of performance-impaired loans. This close cooperation with the Garden City society Hellerau AG, founded in 1908 and their professionals as servicing partners takes place.