“Keep an Eye on the NPL&REO Markets 2025”: Prime Yield uncovers key findings on NPL trading dynamics
Prime Yield has just released the 2025 edition of ‘Keep an Eye on the NPL&REO Markets’, the annual report that analyses the dynamics of NPL transactions, as well as the KPIs of this sector, in Brazil, Greece, Portugal and Spain.
Among the main conclusions of the new edition is the fact that the European markets covered by Prime Yield in terms of NPL dynamics recorded different performances in 2024, both in terms of transactions and the actual reduction of this type of credit in their financial system.
On the one hand, Portugal and Spain, where the stock of non-performing loans decreased, contrary to the dominant trend in Europe. In these two countries, the sale of distressed debt portfolios exhibited improved dynamics in 2024, fuelled by secondary market activity and corporate transactions.
Greece, on the other hand, saw its NPL stock grow for the first time in years, despite remaining at low levels and still sharply below the critical years of what was once Europe’s most worrying market. Despite the trend recorded in the defaulted credit pile stock, the sale of such portfolios slowed down compared to previous years. This is not surprising, given the country’s strong deleveraging process and the consolidation of HAPS, which will have entered its final phase after five years in force.
In Latin America, Brazil also saw an increase in NPL stock, albeit at a much slower pace than in the last two years, although this did not translate into a substantial increase of transactions. In any case, activity is robust and more diversified, but reflecting the conditions of a market that has yet to scale up as it is at a very different stage of maturity from Southern Europe.
