EU supervisors remain concerned that banks’ real-estate exposure is vulnerable, and US contagion risk is an issue. But while German banks’ CRE portfolios are unlikely to have endangered the safe-haven status of Pfandbriefe, office exposure is a worry.

Scope Ratings has published the performance overview of notes issued by Marzio Finance, a EUR 10bn securitisation programme backed by ‘cessione del quinto’ and ‘delegazione di pagamento’ (CQS) loans originated by IBL Banca.

Safety-related production problems at Boeing Co. are delaying the normalisation of the aviation finance sector, partly to the benefit of aircraft-leasing companies, as post-pandemic demand for air travel grows faster than the supply of aircraft.

CRE refinancing risk remains high. We still believe that 40% of fully-extended securitised loans present high or very high refinancing risks but based on recent extension requests, moderate refi risk has increased materially from 23% to 41%.

After a strong January, EUR benchmark covered bond issuance slowed in February and March. Some of the reluctance to issue may have been driven by Germany’s specialised commercial mortgage lenders, given rising tensions in commercial real estate.

Europe’s real estate companies grapple with negative credit outlook; German banks look resilient despite CRE risks; bond market access is a differentiator for property companies; systemic risks are still high in European housing

February 2024 Italian NPL collections of EUR 114m were 15% up month-on-month but 18% below the February average of the three previous years.

Long-term stable cashflows promised by infrastructure projects are increasingly attracting institutional investors, but not all projects are created equal. Fibre networks, one of the newest infrastructure asset classes in Europe, are a case in point.

January 2024 Italian NPL collections of EUR 99m were 56% down month-on-month and 12% below the January average of the three previous years, continuing the declining trend observed throughout 2023.

No impact on existing ratings