This page has been archived and commenting is disabled.
A Non-Performing Loan BWIC Out Of Where!?
For years traders have had to contend with billions upon billions in monthly, weekly and even daily (yes, we all remember 2011) BWICs out of Europe's periphery, as countries from Italy to Ireland to Portugal to Spain to Greece scrambled to find greater fools to offload their non-performing, aka distressed, loans to. One thing that was missing was even the faintest hint of trouble at the European "core" mothership: Germany. That has now changed.
Hm, so €247MM in 31 loans "collateralized" by €4.6MM in rental income? Where does one sign?
But if at least one bank in Germany is choking with NPLs, that means that... Oh no.
So with this rather surprising BWIC, we declare the European NPL floodgates - by some estimates well in the trillions - to be officially open.
- 13613 reads
- Printer-friendly version
- Send to friend
- advertisements -



The generals are falling left and right..... small doors coming very soon.
"DebtX_7520 - €132 million unsecured single relationship"
What is that -- Fitschen's MasterCard balance?
okay, I'll buy it off their hands...I didn't want to stack anymore of that heavy phyzz at these crazy-ass low prices anyways...sheesh...
What is a BWIC? Shouldn't these acronyms be explained in the intro to the text?
Put in a buy order at ZERO. Mr. Valenitne has set the price.
It's a solicitation for competitive bids. In this case for a portfolio of non-performing loans from Germany.
ZH is a collection of acronyms and obscure chart porn. Here's your definition: http://www.investopedia.com/terms/b/bwic.asp
I think ZH assumes their readers are mostly traders and know this acronym soup, when in fact, these days based on the comment board they appear to be mostly toothless doomsday preppers.
Hey, I still have 3 teeth left.
Then, obviously, you're prepping for the day when you don't have any.
giorgioorwell got a lot of downvotes, but he is right; the comments used to be much better.
DISCLOSURE: I am not a trader, so maybe I help dumb down the average.
Regards,
Cooter
yes, sitting in my bunker in the dark with my night vision googles eating a can of beans with the wife
So your wife is the main course or a side dish?
Bad grammar and punctuation can be deadly:
"Let's eat, Grandma!"
"Let's eat Grandma!"
I guess that puts you 1/2 cut above the rest of us Mr McGoogle
Go read one of the comment strings on one of the more interesting ZH posts (not a another chart, pick an Obama/White House one for example) and tell me what you see.
You can see the same stuff under Boehner strings.
Let me tell you somehting about the Orange Man.
Let's face it. politicians are easy to hate. They deserve all the bashing they get.
Agreed. What I don't understand is how Congress can have a 9% public approval rating the day before the elections, then 92% of the incumbents get reeleected. Is this what we mean by "getting the government we deserve?"
Nonperforming loans would never happen in Merika.
"We're not Deadbeats!"
Barry said so.
Wrong. *I* get the government *they* deserve.
oh, and I am most definitely not a trader and only half prepped.
And you don't have any teeth, do you???
I have teeth..but I also have temporary dental repair in the kit....a good prepper knows he is going to lose a filling someday
And yet your avatar pays tribute to the dystopian Orwellian future?
Let me ask you...Do you really like O'Brien's totalitarian view of the boot stomping on the face of a man? Is that whom you consider the hero, Mr. Orwell?
Perhaps Santa will bring you a copy of When there are no Dentists for Xmas.
Jerimiah Johnson would just skin a ball and bite down hard.
Then he'd load that ball and remember to aim a touch lower.
Scratch "useless", insert "toothless"
So securities dealers - not brokers - are looking to sell debt to the highest bidder from the "strength" sector of Europe (Germany).
And this in "more liquid" (flush-able) securities.
Bullish?
Bid
Wanted
In
Competition
Bid Wanted In Competition
I'm no financial expert, but I did sleep at a Holiday Inn last night, so I believe it stands for Buy What Is Crap. Let's start the bidding at $50 million...
But wait, I'm confused...
Very clever, Amish. I missed it on the first glance.
Bid-Wanted-In-Competition.
Buy Wretched Investment Crap
Butt Worm Infested Corpse
Buy With Infinite Credit
Bullet with Incendiary Core
Wait, i want a bid on my non-running car.
If you wait long enough perhaps it will run one day.
I've got a brother in law like that. Want to put in a bid on him? Maybe he will work some day...
Your brother in law and my wife as a package deal.
Sorry, honey.
Oh yeah, gimme soma dat half a billion in unsecured loan realtionships! ;-)
Some of that fine, fine Yellen sex.....
If it is 2007 you buy it knowing they are going to bail it out!
The EU is already de facto done.
The fundamental fracture in the spinal cord of that union can't possibly be undone, since it was congenital.
It's entertaining to hear/read the bureaucratic spin coming out of the mouths of knaves in order to delay having to publicly, openly admit the reality, however.
"DebtX"?
Seriously?
"We're going to need a bigger fulcrum."
Leverage to the moon and back.
So what bak are we taking about ? Aareal????
Listen Zero's.
Do you know how much I'd pay for a bag full of non-performing loans?
Fucking Zero!
I already have a lot of non-performing loans.
A student-loan , a car-loan, a creditcard and hell, i am not paying anything.
Be very quiet in the USSA that is grounds for FEMA camp invitations.
Actually, I'd love to be able to borrow at zero and be backstopped by U.S. tax payers when purchasing some or all these loans.
That was my thought, buy it and get bailed out directly or by some kind of AIG like scam.
Sorry.
Taxpayer buggery is for privileged members only.
VISA and Master card went under a dollar during the crash. In three months they were worth 4-5 bucks. Just sayin'. I called it but I didn't have the guts to do it is why I remember.
*
"we declare the European NPL floodgates - by some estimates well in the trillions - to be officially open."
to be followed by fellow Amerikans soon enough.
One reason why i think next downturn will be another doozy .... slap on the wrist for defaulters last go round. Those memories still fresh. Expect throwing in of the towel at the first pinch of pain
Somewhere a very fat lady is starting to sing!
Deutsche Bank rivals Yucca Mountain for hazardous material
but the FED will always be the Everest of Crap™!
DebtX SpaceX,,whatever..
$4MM income on $247MM. gotta be a lot of owner-occ residential loans in there
This is all rather emotional:
1.
>>>
Hm, so €247MM in 31 loans "collateralized" by €4.6MM in rental income
<<<
Actually, that not what the text said: The text said the loans were collateralised by liens 'on 42 properties', not by any rental stream. The point of indicating the rental stream is that (apparently) you would get (if you paid 100%) an immediate yield of about 2% if the borrowers default and turn the property over to you. Such a yield is hardly rubbish in the current environment, and ignores any other rights (general or specific to these transactions) that might be available (eg potential redevelopment).
2.
Nothing says they are all from one bank, might well be three from the way things are worded.
3.
Even if all the loans were entirely dud (which is actually quite rare) I don't think 1Bil is so much in the context of the entire German loan book.
Watson
true
but european banks always been more highly levered than US ones. I used to laugh when Geithner would (often) comment on how healthy US banks were to european brethren (my brain translated as "we only weigh 350 pounds, but THEY weigh 500 pounds!)
This is pocket change, but does ANYONE think this is not the beginning of more versus one off?
>>>
This is pocket change, but does ANYONE think this is not the beginning of more versus one off?
<<<
Possibly, but in fairness another explanation is that some lenders have noticed the slowdown and are clearing the books sooner rather than later.
Prompt action like that would be good credit risk management - 'shrink and simplify' is good motto in bad times.
Watson
It is also important to remember that banks always, since it it the right thing to do, only offer the best NPL's first. Due to the honesty of Bankers the really crappy stuff is left on the books up to and only after the best NPLs have been sold first.
Uh, I think I need some popcorn?
I think you need to go to the bathroom.
Don't worry, this part of the movie is slow, but you really need to go to the bathroom.
haven't you heard of "trucker popcorn tubs"??
Does that DOG repo guy buy this stuff...lots of reposetions in that package I bet...reality TV baby..with lots of tatoos
Put in a bid for $50 USD
Buy 'em!
i always found it interesting when the euro hoi polloi buy a house, it is not uncommon to have to put 50% down. Yet euroelites running the banks leverage 50 X's?
Guillotine the eurobankers first...
We're only selling these non performing loans to the first 100 callers. Act now! Operators are standing by.
and a free toaster, from one of the houses with a non-performing loan.
1 cent bid, all or nothing. Unseen. My service co is reaady to kick seven shades of shit out of Kraut consumers to redeem my investment at 15 cents. Kachiing.