NPL Advisory Panel paper: Monitoring the state of non-performing loans (NPL) secondary markets

The NPL Advisory Panel is an informal Commission expert group that supports the Commission in implementing many of the actions presented in the non‑performing loans (NPLs) action plan and advises the Commission as regards future proposals.

This paper presents a detailed analysis based on an extensive coverage of several dimensions of NPL secondary markets, based on market data, market intelligence and literature review, and the responses to a survey launched by the NPL Advisory Panel in the first half of 2024.

The paper has been structured around three main building blocks

• First, it tracks the evolution of NPLs in the EU, the potential outlook and the connected cost‑of‑living crisis
• Second, it provides a detailed analysis of NPL secondary markets, starting from an overview of the main players (e.g., servicers, purchasers) in those markets and then moving to an in‑depth analysis of the dynamics taking place in the markets, in terms of volumes, prices and performance
• Third, it focuses on consumer‑related aspects of the market, like the evolution of costs, fees and forbearance measures. Finally, the paper concludes by summarising the main findings of the three building blocks