Recovery sparks spate of distressed asset sales

Bad banks and ring-fenced legacy assets remain big parts of the structured credit market. With a rebound in prices and soaring capital charges, there is speculation the pace of asset sales could speed up. Mark Pengelly reports

ali-lumsden

Shifting so-called toxic assets into bad banks became a lifeline for financial institutions during the crisis. With many banks all but crippled by mounting losses on distressed assets during the worst of the upheaval, the ability to transfer them to special-purpose vehicles (SPVs) or other ring-fenced entities, and therefore gain protection from further mark-to-market volatility, helped restore confidence to the financial sector.

“A bad bank is a great concept, because it releases the remaining

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here