Nonperforming Loan Market Still Not Performing

NEW YORK CITY-Most would-be investors in distressed debt think the market for such debt hasn’t gotten up to speed, with 76% of respondents to an Ernst & Young survey saying the market is “still developing” and another 13% opining that it hasn’t even begun. So it stands to reason that while all respondents to the E&Y survey did due diligence on nonperforming loan portfolios during 2009, fewer than 17.5% actually completed a purchase. The reason: there wasn’t enough distress to go around, writes E&Y’s Mark Grinis and Christopher Seyfarth in a report released Monday. "Up until now, most, but not all, banks have not been engaged in selling distressed loans," leaving the FDIC to take the lead, according to the report.

Click here to view this article from its source.