PDI Picks – 9/3/2018

Owning up to Europe’s distressed opportunity


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Under increasing pressure, banks are starting to offload troubled assets – with Italy leading the way.

Like a small child who keeps a broken toy in a clenched fist to hide it from a parent, many European banks have been reluctant to own up to the true value of distressed loans.

However, regulatory pressures and improvements in their own balance sheets have persuaded many of those banks, that had previously been reluctant, to acknowledge severe write-downs in loans – a precursor to selling them on to distressed investors.