Investment knowledge of non-performing assets package: risk control, transfer and pricing

When banks sell non-performing assets, they generally transfer them in the form of packages, which often contain some "old packages" and "bad packages". If investors can't distinguish the good from the bad during the acquisition, once they buy the high risk and low yield asset package, they will lose money or even lose money. Therefore, when purchasing the non-performing asset portfolio, we should comprehensively analyze and judge the risk, value and future income of the asset portfolio according to the due diligence results of the asset portfolio, so as to avoid making the non-performing asset investment a high-risk "gambling stone" game to the greatest extent.

1、 Asset realization degree and asset disposal cost

Whether assets can be realized quickly and capital can be withdrawn is the primary consideration. At the same time, the personnel of the project team should take into account the cost of the later disposal of assets, including taxes, labor costs, as well as the possible assessment, auction and other expenses incurred in the disposal process.

2、 Mortgage rate and collateral value fluctuation

During due diligence, the project team members should actively pay attention to the mortgage rate of single creditor's rights and keep an eye on the fluctuation of the market value of collateral. When necessary, the project team members shall regularly conduct market research on the value of the collateral. For example, if a house is used as collateral, you should visit the same type of houses around the collateral to understand its average market price.

3、 Cost and feasibility of handling mortgage change registration procedures

Collateral is the core value of the asset package and the ultimate guarantee for the realization of creditor's rights in the process of asset disposal. Therefore, whether the collateral can handle the change registration, the change registration process, and the special provisions of the location of the collateral should be mastered and used as the basis for feasibility analysis.

4、 Asset disposal mode and macro policy impact

The project team members should make reasonable prediction and planning for possible future asset disposal methods, such as discussing the possibility of negotiating with the debtor (guarantor) for discount settlement and splitting and transferring the asset package.

At the same time, the impact of national macro policies also affects the application of disposal methods and the value of asset realization when disposing to a certain extent.

5、 The impact of the debtor (guarantor) and the place where the collateral is located on the judicial environment

When it is necessary to dispose of assets by litigation and execution, the judicial environment of the debtor (guarantor) and the place where the collateral is located will directly affect the result of asset disposal and the realization of creditor's rights.

6、 Some knowledge about non-performing asset pricing

In the whole process of disposal of non-performing assets, the pricing of non-performing assets as a leading force must play an important role. In fact, the pricing of non-performing assets is a process of estimating the value of non-performing assets, which is a theoretical basis for the sale of non-performing assets.

Pricing of non-performing assets

It is divided into two times. The first is between commercial banks and asset management companies, and the other is between asset management companies and investors.

① Transfer pricing

Pricing in the process of loan transfer, which is the price basis for commercial banks and asset management companies to issue and receive accounts when buying, selling or transferring assets.

② Disposal pricing

Pricing in the process of disposal, which reflects the profit and loss of the asset management company on this asset and relates to the interests of the asset management company and investors.

Non performing asset pricing process

① Due Diligence

Also known as detailed investigation, it usually means that commercial banks or asset management companies should conduct field investigations on enterprises involved in non-performing assets, visit relevant personnel or consult relevant information of enterprises, and check the status and quantity of collateral on the spot before transfer and disposal, so as to obtain first-hand information about debt enterprises and non-performing assets.

② External evaluation (or internal evaluation) of non-performing assets

It is mainly through asking about the average market value level and due diligence, to conduct their own valuation and the valuation of external companies, and then to give a reasonable price for non-performing assets as a follow-up reference standard.

③ Market inquiry

This link mainly provides a possible inquiry range to potential investors, and then gives the corresponding reference price according to the price range in the minds of investors to provide the basis for the final pricing; The preliminary valuation of non-performing assets is based on the information sources of the above three links.

④ Preliminary valuation of non-performing assets

The preliminary valuation is conducted according to the information sources of the above three links.

⑤ Decision Pricing

On the basis of preliminary valuation, the final pricing of non-performing assets is given according to a series of provisions and procedures of its pricing decision, and the non-performing asset pricing process is completed.