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A Non-Performing Loan BWIC Out Of Where!?

Tyler Durden's picture




 

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.

 

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Tue, 10/14/2014 - 12:51 | 5329158 wallstreetapost...
wallstreetaposteriori's picture

The generals are falling left and right..... small doors coming very soon.

Tue, 10/14/2014 - 12:58 | 5329192 idea_hamster
idea_hamster's picture

"DebtX_7520 - €132 million unsecured single relationship"

What is that -- Fitschen's MasterCard balance?

Tue, 10/14/2014 - 13:29 | 5329321 Save_America1st
Save_America1st's picture

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...

Tue, 10/14/2014 - 12:53 | 5329162 gmak
gmak's picture

What is a BWIC? Shouldn't these acronyms be explained in the intro to the text?

Tue, 10/14/2014 - 12:55 | 5329169 Philo Beddoe
Philo Beddoe's picture

Put in a buy order at ZERO. Mr. Valenitne has set the price. 

Tue, 10/14/2014 - 12:56 | 5329171 Cangaroo.TNT
Cangaroo.TNT's picture

It's a solicitation for competitive bids.  In this case for a portfolio of non-performing loans from Germany.

Tue, 10/14/2014 - 12:57 | 5329184 giorgioorwell
giorgioorwell's picture

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.  

Tue, 10/14/2014 - 12:59 | 5329193 Cangaroo.TNT
Cangaroo.TNT's picture

Hey, I still have 3 teeth left.

Tue, 10/14/2014 - 13:37 | 5329358 Amish Hacker
Amish Hacker's picture

Then, obviously, you're prepping for the day when you don't have any.

Tue, 10/14/2014 - 13:38 | 5329375 CrazyCooter
CrazyCooter's picture

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

Tue, 10/14/2014 - 12:59 | 5329197 the not so migh...
the not so mighty maximiza's picture

yes, sitting in my bunker in the dark with my night vision googles eating a can of beans with the wife

Tue, 10/14/2014 - 13:30 | 5329272 MsCreant
MsCreant's picture

So your wife is the main course or a side dish?

Tue, 10/14/2014 - 19:36 | 5331339 MisterMousePotato
MisterMousePotato's picture

Bad grammar and punctuation can be deadly:

"Let's eat, Grandma!"

"Let's eat Grandma!"

Tue, 10/14/2014 - 13:06 | 5329228 williambanzai7
williambanzai7's picture

I guess that puts you 1/2 cut above the rest of us Mr McGoogle

Tue, 10/14/2014 - 13:12 | 5329250 giorgioorwell
giorgioorwell's picture

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.

Tue, 10/14/2014 - 13:15 | 5329260 Philo Beddoe
Philo Beddoe's picture

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. 

Tue, 10/14/2014 - 13:40 | 5329385 Amish Hacker
Amish Hacker's picture

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?"

Tue, 10/14/2014 - 14:15 | 5329596 Never One Roach
Never One Roach's picture

Nonperforming loans would never happen in Merika.

 

"We're not Deadbeats!"

 

Barry said so.

Tue, 10/14/2014 - 19:37 | 5331346 MisterMousePotato
MisterMousePotato's picture

Wrong. *I* get the government *they* deserve.

Tue, 10/14/2014 - 13:14 | 5329243 giorgioorwell
giorgioorwell's picture

oh, and I am most definitely not a trader and only half prepped.

Tue, 10/14/2014 - 13:22 | 5329277 MsCreant
MsCreant's picture

And you don't have any teeth, do you???

Tue, 10/14/2014 - 13:28 | 5329322 youngman
youngman's picture

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

Tue, 10/14/2014 - 13:35 | 5329327 Tall Tom
Tall Tom's picture

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?

Tue, 10/14/2014 - 13:33 | 5329337 cossack55
cossack55's picture

Perhaps Santa will bring you a copy of When there are no Dentists for Xmas.

Tue, 10/14/2014 - 14:23 | 5329653 shovelhead
shovelhead's picture

Jerimiah Johnson would just skin a ball and bite down hard.

Then he'd load that ball and remember to aim a touch lower.

Tue, 10/14/2014 - 13:12 | 5329254 agNau
agNau's picture

Scratch "useless", insert "toothless"

Tue, 10/14/2014 - 13:23 | 5329273 ebworthen
ebworthen's picture

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?

Tue, 10/14/2014 - 12:57 | 5329189 IANAE
IANAE's picture

 

 

Bid

Wanted

In

Competition

Tue, 10/14/2014 - 12:58 | 5329191 ShorTed
ShorTed's picture

Bid Wanted In Competition

Tue, 10/14/2014 - 13:03 | 5329216 sunaJ
sunaJ's picture

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...

Tue, 10/14/2014 - 13:41 | 5329404 Amish Hacker
Amish Hacker's picture

But wait, I'm confused...

Wed, 10/15/2014 - 05:42 | 5332604 Ctrl_P
Ctrl_P's picture

Very clever, Amish. I missed it on the first glance.

Tue, 10/14/2014 - 13:48 | 5329446 dalitis
dalitis's picture

Bid-Wanted-In-Competition.

Tue, 10/14/2014 - 15:57 | 5330369 Bananamerican
Bananamerican's picture

Buy Wretched Investment Crap

Wed, 10/15/2014 - 05:40 | 5332601 Ctrl_P
Ctrl_P's picture

Butt Worm Infested Corpse

Wed, 10/15/2014 - 05:45 | 5332605 Ctrl_P
Ctrl_P's picture

Buy With Infinite Credit

Wed, 10/15/2014 - 05:49 | 5332612 Ctrl_P
Ctrl_P's picture

Bullet with Incendiary Core

Tue, 10/14/2014 - 12:54 | 5329165 SpanishGoop
SpanishGoop's picture

Wait, i want a bid on my non-running car.

If you wait long enough perhaps it will run one day.

 

 

Tue, 10/14/2014 - 12:57 | 5329182 SumTing Wong
SumTing Wong's picture

I've got a brother in law like that. Want to put in a bid on him? Maybe he will work some day...

Tue, 10/14/2014 - 13:13 | 5329255 SpanishGoop
SpanishGoop's picture

Your brother in law and my wife as a package deal.

Sorry, honey.

 

Tue, 10/14/2014 - 12:55 | 5329173 nmewn
nmewn's picture

Oh yeah, gimme soma dat half a billion in unsecured loan realtionships! ;-)

Tue, 10/14/2014 - 13:15 | 5329259 KnuckleDragger-X
KnuckleDragger-X's picture

Some of that fine, fine Yellen sex.....

Tue, 10/14/2014 - 13:25 | 5329290 MsCreant
MsCreant's picture

If it is 2007 you buy it knowing they are going to bail it out!

Tue, 10/14/2014 - 13:01 | 5329188 TruthInSunshine
TruthInSunshine's picture

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.

Tue, 10/14/2014 - 12:57 | 5329190 ebworthen
ebworthen's picture

"DebtX"?

Seriously?

"We're going to need a bigger fulcrum."

Leverage to the moon and back.

Tue, 10/14/2014 - 12:59 | 5329195 jubber
jubber's picture

So what bak are we taking about ? Aareal????

Tue, 10/14/2014 - 12:58 | 5329196 Bangalore Equit...
Bangalore Equity Trader's picture

Listen Zero's.

Do you know how much I'd pay for a bag full of non-performing loans?

Fucking Zero!

Tue, 10/14/2014 - 12:58 | 5329201 SpanishGoop
SpanishGoop's picture

I already have a lot of non-performing loans.

A student-loan , a car-loan, a creditcard and hell, i am not paying anything.

 

 

Tue, 10/14/2014 - 14:39 | 5329744 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Be very quiet in the USSA that is grounds for FEMA camp invitations.

Tue, 10/14/2014 - 13:00 | 5329209 Excursionist
Excursionist's picture

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.

Tue, 10/14/2014 - 13:27 | 5329309 MsCreant
MsCreant's picture

That was my thought, buy it and get bailed out directly or by some kind of AIG like scam.

Tue, 10/14/2014 - 14:31 | 5329701 shovelhead
shovelhead's picture

Sorry.

Taxpayer buggery is for privileged members only.

Tue, 10/14/2014 - 15:32 | 5330172 MsCreant
MsCreant's picture

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.

Tue, 10/14/2014 - 15:33 | 5330173 MsCreant
MsCreant's picture

*

Tue, 10/14/2014 - 13:05 | 5329222 Bell's 2 hearted
Bell's 2 hearted's picture

"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

Tue, 10/14/2014 - 13:05 | 5329227 ziggy59
ziggy59's picture

Somewhere a very fat lady is starting to sing!

Tue, 10/14/2014 - 13:07 | 5329234 Bell's 2 hearted
Bell's 2 hearted's picture

Deutsche Bank rivals Yucca Mountain for hazardous material

Tue, 10/14/2014 - 16:00 | 5330390 Bananamerican
Bananamerican's picture

but the FED will always be the Everest of Crap™!

Tue, 10/14/2014 - 13:07 | 5329237 timeless21
timeless21's picture

DebtX SpaceX,,whatever..

Tue, 10/14/2014 - 13:07 | 5329242 QQQBall
QQQBall's picture

$4MM income on $247MM. gotta be a lot of owner-occ residential loans in there

Tue, 10/14/2014 - 13:14 | 5329252 Handful of Dust
Handful of Dust's picture
"Niemand sah kommenden," Herr Schultz spater sagte gegenüber dem Kommittee.
Tue, 10/14/2014 - 13:15 | 5329261 Watson
Watson's picture

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

Tue, 10/14/2014 - 13:22 | 5329279 Bell's 2 hearted
Bell&#039;s 2 hearted's picture

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?

Tue, 10/14/2014 - 13:42 | 5329398 Watson
Watson's picture

>>>
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

Tue, 10/14/2014 - 14:36 | 5329724 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

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.

Tue, 10/14/2014 - 13:15 | 5329262 astoriajoe
astoriajoe's picture

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.

Tue, 10/14/2014 - 13:23 | 5329286 Bell's 2 hearted
Bell&#039;s 2 hearted's picture

haven't you heard of "trucker popcorn tubs"??

Tue, 10/14/2014 - 13:30 | 5329331 youngman
youngman's picture

Does that DOG repo guy buy this stuff...lots of reposetions in that package I bet...reality TV baby..with lots of tatoos

Tue, 10/14/2014 - 13:34 | 5329343 DrunkMath
DrunkMath's picture

Put in a bid for $50 USD

Tue, 10/14/2014 - 13:38 | 5329376 tommylicious
tommylicious's picture

Buy 'em!

Tue, 10/14/2014 - 13:56 | 5329492 assistedliving
assistedliving's picture

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...

Tue, 10/14/2014 - 14:04 | 5329522 insanelysane
insanelysane's picture

We're only selling these non performing loans to the first 100 callers.  Act now!  Operators are standing by.

Tue, 10/14/2014 - 14:06 | 5329542 astoriajoe
astoriajoe's picture

and a free toaster, from one of the houses with a non-performing loan.

Tue, 10/14/2014 - 21:27 | 5331755 Dien Bien Poo
Dien Bien Poo's picture

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.

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