Nordic Market Overview, September 2024

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Nordic Market Overview, September 2024

Stockholm 2024-09-18

Still the buyer’s market

Market overview:

We at Helix Ice continue to share our knowledge regarding the latest trends and business information for the Nordic NPL market.

Too much is going in the Nordic NPL market at the moment to wait with an ordinary NMO Half year report from our side.  Who´s buying in the Nordics and when is it the best time to sell NPL portfolios? That’s still the two most frequent asked questions right now that I´m being asked from sellers of NPL portfolios and with less buyers active in Europe and the Nordic some segments are actually not having more than a couple of possible buyers right now. The need for other solutions than the old traditional Forward flow and One off is obvious and we also see that the Nordic market now have got used to different type of securitizations. NOBA, Marginalen Bank, Hoist and TF Bank have all communicated different type of structured solutions for the NPL market and we continue to see performing loans being sold and with that the consolidation of the Bank & Finance market continues. We already mentioned in our last NMO that we probably would see this and it´s always great to be right. In June we attended the Global ABS in Barcelona, a great arena to meet up and discuss new and established type of structured solutions and to share knowledge between industries on how to make investors feel comfortable with the different setups. Read more about our findings from that visit here: Global ABS 2024 – Helix Ice 

In the end of September, we will participate at the DDC Investor Summit in Prague and we are really looking forward to several interesting meetings and sessions. Let´s meet up for a 1:1 meeting if you plan to be there.

New collaborations, securitization structures to finance bigger deals and a more open-minded view on new type of deal setups makes the Nordics a very interesting region at the moment and we have continued to help our investors to invest in both Telecom and Bank & Finance portfolios the last 12 months, still with focus on the unsecured B2C debts. Second quarter of the year is always interesting, especially in Sweden, when it comes to the collection rates as we have two tax return months during that time period. We are very pleased with the outcome of the tax return this year and now see more and more positive signals in the different Nordic economies. We continue to keep up the close collaboration with our different debt collection 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 visit the Nordics, lets meet up in Stockholm, Copenhagen, Oslo or Helsinki to discuss your views on the latest trends in the NPL portfolio business. We at Helix Ice are always interested in sharing knowledge regarding the upcoming NPL transactions across the Nordics and talk about different type of solutions for how you can get best possible return of investment.

My experience at Global ABS 2024: a journey through the world of structured finance

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Ever heard of the Global ABS conference? It’s the powerhouse event for structured finance professionals, and I was thrilled to attend this year’s edition in Barcelona. For 28 years, this event has been the go-to place for professionals looking to network, learn, and make deals. With around 5,000 attendees and 100 exhibitors, the conference offered an unparalleled opportunity to dive into the latest market trends, regulatory developments, and innovative financial products. Here are some of the key highlights and my personal takeaways from the event.

Some of the companies represented at the conference were SEB, Kredinor and Danske Bank from the Nordic market, together with international players like the investment banks JP Morgan, Deutsche Bank, and Santander CIB. Rating agencies such as Moody’s and Fitch were also present, along with a significant number of law firms, which had a very strong representation among the attendees. This diverse mix of participants highlighted the global reach and influence of the conference.

Day one: Diving into global markets and Fintech innovations

Seminars Attended:

  • Global ABS markets: The discussion around public-private partnerships made me realize the potential for these collaborations to drive market growth. The dynamic between domestic and international demand and how prudential regulation influences bank vs non-bank supply was a hot topic.
  • Advancements in Fintech: I was captivated by the latest developments in Fintech, particularly the integration of Distributed Ledger Technology (DLT) and AI in capital markets. One speaker humorously quipped, “AI won’t take your job, but someone who knows how to use it might!”
  • Using securitisation to finance the transition: This session was eye-opening, highlighting how ABS can support green initiatives like wind and solar energy. The discussion on the challenges of financing electric vehicles was particularly engaging.

My thoughts: The first day was an eye-opener. I learned a lot more about structured finance and how ABS can be utilized to spread risk in investments. The atmosphere was buzzing with energy and excitement. The discussions on how ABS can support ESG initiatives were both enlightening and motivating.

Day two: pitching, partnering, and emerging opportunities

Seminars Attended:

  • Emerging asset classes: The session on digital infrastructure, music, and sports securitization was fascinating. The idea of securitizing music royalties opened my eyes to how finance can innovate in unexpected areas.
  • Evolution of specialty finance: This seminar provided a deep dive into the risk vs. reward landscape of specialty finance.
  • ESG Methodologies, Analytics & Disclosure: The importance of standardized ESG disclosures across countries was a key takeaway. The debate on regulatory alignment was particularly spirited.

My Thoughts: The second day was a whirlwind of meetings and pitches. I had the chance to present Helix Ice’s services and our upcoming products to potential partners and industry peers. The seminars offered a glimpse into how ABS can be leveraged to create new market opportunities and asset classes.

Day Three: Shaping the Future of Finance

Future leaders workshop: Being invited to the Future Leaders Workshop was a highlight of the conference. This initiative is designed for those identified as the next generation of leaders in capital markets. Two people stood out in particular: Janet Oram from the seminar What does excellence look like? and Rob Ford from the seminar What I wish I’d known. Janet’s insights on defining and achieving excellence were incredibly inspiring, while Rob’s retrospective on his career provided valuable lessons and practical advice.

We had some great discussions among us participants, and I got to explore differences and commonalities such as work-life balance and career motivations with like-minded professionals at similar levels of experience from around the world.

Exploring Barcelona

Beyond the conference, I had an amazing time exploring Barcelona for the first time. The city’s stunning architecture, long sandy beaches, and delicious food—empanadas, tapas, and paella—really hit the spot. I enjoyed the mix of old and new architecture throughout the city; it truly felt like the city has grown organically over time. The vibrant atmosphere of the local markets and the energy of the city’s nightlife added to the charm of my visit.

Conclusion

Overall, the Global ABS 2024 was an incredible experience that enriched my understanding of structured finance and provided numerous opportunities for networking and professional growth. From deep dives into global market dynamics and fintech advancements to exploring new asset classes and participating in the Future Leaders Workshop, the conference was a blend of education, inspiration, and practical insights.

Thinking about attending Global ABS next year? Here’s my advice: dive in with an open mind, be ready to network, and don’t be afraid to ask questions. I left Barcelona with new knowledge, valuable connections, and a refreshed perspective on the future of finance. I’m already looking forward to next year’s event!

By: Leo Brouwers, Senior investment manager

Nordic Market Overview, half year report H2 2023

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Stockholm 2023-11-23
Market overview: We at Helix Ice continue to share our knowledge regarding the latest trends and business information for the Nordic NPL market.

In our last NMO we had a cliffhanger about that July started really well. We helped our investors to win home both Forward flow an On Off deals just before the summer vacation started and after that we have had a very interesting autumn when it comes to new business opportunities.

The Nordic NPL market continue to be the buyer’s market and we have seen several examples now the last year of sellers adjusting their expectations and accepting a lower price on portfolios than before. The forecasted NPL volumes, especially in the bank & finance segment, for the coming 12 months in the Nordics are on really high levels and our last business trip to London gave us similar information regarding most of the other European markets as well. We can now also see that potential co-investors are ready to invest in the Nordics on single digit level when it comes to expectations regarding the annual percentage rates. Intrum have left a handful of their European markets and are now in the phase of leaving more markets and to focus even more on debt collection servicing, Kredinor is mentioned as one of the buyers that now are adjusting their FF contracts. With a couple of the bigger players taking a step back it opens up for others to make some great deals and for new investors to step into the Nordics. Very interesting future, we would say.

Collection forecast is still met in most of the deals, but we absolutely see the effect of the macro-economic situation across the Nordics and are working closely with our servicing partners to find the best way forward to keep up the contact with our debtors. 

Please feel free to contact us for more dialogues and opportunities around the Nordic NPL market, we love to share our knowledge.

Have a great Christmas shopping!

/COO, Johan Gustafsson

Nordic Market Overview, summer 2023

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Stockholm 2023-07-12

What a great start of the year!

Market overview:

We at Helix Ice would like to wish our investors, sellers, servicing partners, advisors and networking friends a really nice summer and we hope you will take the chance to BBQ as much as possible. 

We have had a really great start of the 2023 with some nice highlights to point out for the first 6 months:

  • 85 MEUR investments made across the Nordics in NPL portfolios
  • First transactions finalized in Norway
  • Senior advisor in deals outside the Nordics
  • Participated on stage in the Nordic session of NPL Europe 2023 in London
  • Full audit without remarks by PwC on all investment companies that we represent via Power of Attorney
  • Co-investment dialogues 
  • And July has started really well…

The Nordic NPL market is still the buyers market and we have seen several examples now the last year of sellers adjusting their expectations and accepting a lower price on portfolios than before. The forecasted NPL volumes, especially in the bank & finance segment, for the coming 12 months in the Nordics are on really high levels and we are in several interesting dialogues on future collaborations regarding those deals. New investors with low experience from investing in the Nordic NPL are also more and more opening up to step into our region as the price levels on portfolios now have been adjusted and also that some of the existing buyers of portfolios are shifting focus.

Collection forecast is still met in the majority of the deals, but we absolutely see an effect of the macro-economic situation across the Nordics and are working closely with our servicing partners to find the best way forward to keep up the contact with our debtors. When talking to other buyers of NPL portfolios in the Nordic market they confirm our view.

Please feel free to contact us for more dialogues and opportunities around the Nordic NPL market, we love to share our knowledge.

Enjoy the summer!

/COO, Johan Gustafsson