Our investment structure in the Nordics is now well established!

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Third year in a row for Helix Ice with deals worth +100 MEUR in the Nordics and we can now see that the type of structure, that we introduced to the Nordic market in the beginning of 2021, is now in similar arrangements being established by others as well. 

We have administrated the launch of four different SPV:s and have during 2023 seen a dramatic change in how the Nordic market have changed when it comes to investors, buyers and servicers. 

Hoist Finance, North Wall Capital and Cerberus have in different type of deals acquired Nordic NPL portfolios and we know that some other, more unofficial deals with other investors in the background, also have been taking place. Tenders regarding NPL portfolios in the Nordics, especially within Bank & Finance, now have less buyers involved and we also see that some banks are looking into other solutions than the traditional way of working with auctions and bidders. For example, Lowell and Resurs Bank announced a partnership with a securitization solution for the NPL portfolios in Sweden, Finland and Denmark. That type of structure is similar to the ones we have been setting up and we have noticed a big attention from other banks in the Nordics to look into these solutions.

We have kept a share of about 85% of our deals value in the Bank & Finance segment and 15% in the Telecom segment. Looking at the deal pipeline for 2024 and the dialogues that are taking place right now, we believe that the Bank & Finance segment in the Nordic region is still the most interesting when it comes to opportunities for investors as a lot of banks are looking to sell of their NPL portfolios.

We have had challenges when it comes to the collection rates in the Nordics but are still in line or just above our forecasted collections on almost all NPL portfolios. This as we work closely with our different servicing partners and keep a focus on high activity rates to keep up the contact with the debtors to help them find the best possible way to get debt free.

Feel free to contact us for a dialogue regarding the NPL market in the Nordic region and to discuss different type of securitization solutions, market opportunities or different type of collaborations. And if you plan to attend the NPL Europe 2024 in London hosted by SmithNovak in the beginning of March, lets meet up and discuss your views on the latest trends in the NPL portfolio business. We will be there as we see it as a perfect place to share and gain new knowledge regarding the upcoming NPL transactions across Europe and talk about different type of solutions.

Nordic Market Overview, Summer 2022

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Market overview:

Usually we send out our Nordic Market Overview twice a year. But with the rapid movement in our business right now and the different effects on the macro economics in the Nordics we decided that 6 months was too long time to wait for next Overview.

First of all, we have noticed a huge interest from global and regional investors to take a bigger step in to the Nordic NPL-market. We also see that a lot of established debt collection companies and NPL buyers are strengthen their organizations and financial muscles to be ready for all the opportunities that right now are available in the Nordics and for the ones coming out soon on the market. It’s in times like these that really big opportunities pop up. At the same time we notice that some of the sellers, especially within unsecured loans, struggle to find a buyer that is ready to pay the price that the sellers are looking for. Most likely we will see some creditors leaving the market as the unsecured loans in +300 TSEK segment have dropped quite dramatically in price levels due to the fact that to many creditors have been to soft in their credit controls when giving out new loans.

In Sweden we see that the economic margins for consumers are now on much lower levels than earlier which also effects the possibility to collect on NPL portfolios at the moment, much more activity per case is needed to get debtors to pay or at least keeping up the contact with the debtor until they have the ability to start their journey to get debt free. In Finland, we see that the tax return month in August are showing some positive signs and we also noticed that some interesting deals could be closed here before the end of the year. Norway and Denmark have also been affected of the high prices but so far, we don’t really see or hear so much from different sources that the collection rates have been affected. Could be something to watch out for in the coming months but still these two markets are super interesting we would say for new investors to step into. Really tough competition among buyers of NPL portfolios in Norway but still a good chance to make some great deals.

Last Nordic Market Overviews published we highlighted the fact that consolidation in the Nordic market were around the corner and that also was confirmed by the new Kredinor being established during the spring in 2022. As mentioned in the beginning of this Overview we see that the debt collection and NPL business are taking new steps and are getting ready for the future. For example, it will be very interesting to see what Hoist – Ropo Capital and Collector are planning to do soon? It’s a small world and our type of business is even smaller and when you have ownership and management crossing over between companies more and more that usually means something interesting is cooking. We are looking forward to a really exciting end of 2022 and start of 2023, we hope you are too!
Please feel free to contact us for more dialogues and opportunities around the Nordic NPL market.

/COO, Johan Gustafsson

Recipe of the month – August

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We are very proud of our Nordic region and to be a part of developing that further with enable new types of business solutions and investment collaborations. Our expertise is NPL portfolios in the Nordics, but we also like to enjoy the Nordic way of living and in that good food is a cornerstone. Each month we will give you our “Recipe of the month” that is something with a Nordic touch that can help you with some extra energy to you and your business. 

August is the end of summer here in the Nordics and start of the fall, nature around is full of delicious things to harvest. Why don’t take a trip to the forest and get some nice Karl-Johan svamp/ Steinpilz / mushroom? Last year we gave you recommendations about a risotto, please check that out as well, but this year we recommend another tasty recipe. Enjoy!

https://viltmat.jagareforbundet.se/recept/skarvgryta-med-svamp-och-lingon

Nordic Market Overview, H1 2022

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Market overview:

A new normal doesn’t really seems to be kicking into our world as the pandemic situation and its uncertainty was replaced by the terrible and unacceptable Russian invasion of Ukraine.

With uncertainty in the financial markets comes risk and with risk comes a more reserved position for longer agreements. As we see it and what we noticed we are up and running with 12-24 months agreements now but with a clear clause to be able to terminate that agreement if dramatic market conditions change can be recognized. The deal pipeline in the Nordics regarding both Telecom and Bank & Finance is on really high levels and some really great opportunities have been available the last months and it seems to be more coming.

In Sweden we noticed from both debt collection industry and creditors that January and February had lower collection rates than expected after a positive finish of 2021. We monitor that development closely now and are looking for positive effects as the society is opening up more and more. However, with increasing prices for fuel, food and logistics we see that the economic margins for consumers are on lower levels than earlier which also effects the possibility to collect on NPL portfolios at the moment. In Finland, legal collection is looking much better after the Covid moratorium has ended but also here we are calculating with having challenges to get people to start their journey to get debt free due to the fact that they have lower economic margins. Norway is keeping up a good collection rate and we are looking closely on interesting deals for the future but also in close contact with authorities to see how they will comment on how Norway will follow some EU-directives or not that could have effect on our type of business. Denmark is showing up positive trends and the deal pipeline for Denmark have been very interesting the last 6 months and new things are coming as well.

Last Nordic Market Overview published we highlighted the fact that consolidation in the Nordic market were around the corner. Modhi and Kredinor later announced that they will join and be an interesting alternative on the debt purchasing market. Our type of business is in constant change and it is always interesting when new players enter the field, tough competition makes you step up! Most likely there will be more news about collaboration and consolidation coming during 2022 and probably also new players entering the market.

Please feel free to contact us for more dialogues and opportunities around the Nordic NPL market.

/COO, Johan Gustafsson, Stockholm 2022-04-12