2017 Restructuring Study
Since 2001, we have published our annual Restructuring Study in Germany, Austria and Switzerland. In our 2017 study we focus on Non-Performing Loans (NPL). Especially for banks, the importance of NPL sales as an alternative to restructuring is increasing. We surveyed 800 restructuring experts, who shared their views on the current restructuring environment and economic development.
Confidence is sinking when it comes to German GDP growth over the next two to three years. For 2017, around 60 percent of those surveyed expect to see growth of two percent or more. Political factors are expected to have a significantly stronger impact than economic factors on the German economy.
Survey participants see a high need for strategic and business model adaption, particularly in the consumer goods and automotive industry. This is especially relevant in light of digitalization. Regarding trends in restructuring, experts report that strategic (42%) and operational (38%) measures remain in the foreground.
The stable economic environment in Germany and the highly liquid market are helping to bring the NPL market back to pre-financial crisis levels.
With increasing capital requirements, NPL sales for credit institutions are becoming an instrument for adjusting the balance sheet. The demand for alternative investment opportunities is stimulated, in particular, by the current interest rate policy.
63% of survey participants expect to see a future increase in NPL transactions. Specialized companies are the most important group of investors in the NPL market. All eyes are on Hedge Funds, which tend to make riskier investments. These and further insights can be found in our 2017 Restructuring Study.