Template-type: ReDIF-Paper 1.0
Author-Name: Paolo Carriere
Title:"Restructuring Funds”; an alternative tool for a systemic approach to active management of Unlikely to Pay (UTP)
Abstract: This paper is aimed at illustrating an innovative tool/strategy to address the general, wider and multifaceted NPL issue from a banking perspective, focusing in particular on UTP; a half-way strategy between a traditional “hold/forbearance” approach and a traditional “portfolio reduction” approach, producing a change in the type of exposure. Such a new, complementary, tool is aimed at overcoming market inefficiencies that other “traditional” approaches/tools currently present and, at the same time, helping to effectively reduce the legacy assets at bearable levels. At the same time this is a “debtor-level” approach that pursues the concentration and coordination of all the exposures of the banking system vis-à-vis the same debtor, as a precondition for a successful restructuring process of corporate borrowers in distress. Such a tool can be identified in a so called “Restructuring Fund”, a specific and peculiar kind of AIF.
Classification-JEL: 
Keywords: Unlikely to Pay (UTP); Non Performing Loans (NPL); Restructuring Fund; Securitization; AMC
Length: 17
Number: 20132
Creation-Date: 2020
File-URL: https://repec.unibocconi.it/baffic/baf/papers/cbafwp20132.pdf
File-Format: application/pdf
File-Size: 301
Handle: RePEc:baf:cbafwp:cbafwp20132