Italy Debt/Buyout Firms: When In the Veneto

A proliferation of words for snow reflects the exceptional environment in which Inuit people survive. It is the same for Italian bankers, who have numerous terms for lousy loans, the Financial Times reported. Of these “unlikely to pay” is the most intriguing, implying a default may be a lifestyle choice as valid as designer spectacle frames. The category, worth about €83bn in outstanding loans, has also piqued the interest of foreign investors, including Bain, Bayview and Algebris. If they buy the debt, there could be a return in it. Everyone could end up better off. Intesa Sanpaolo is in talks with asset manager Prelios to manage its burden of poor quality loans. Some in Milan believe this could presage a slow sale by Italy’s biggest domestic lender of UTPs worth billions. Optimists hope that across southern Europe, cash-rich foreigners will swoop in to buy UTP debt. Read more

Location