Moody's: China's securitization of NPLs will continue to grow

Moody's Investors Service is out with a report on the Chinese banks this Wednesday, noting that the securitization of non-performing loans (NPLs) in the country will continue to grow and widen in terms of assets.

Key Quotes:

"Our analysis of the 16 NPL ABS deals issued to date shows the securitization of a wide variety of non-performing assets, including secured and unsecured loans across a range of asset classes, such as credit cards, corporate loans, small and medium enterprise (SME) loans and residential mortgage loans"

"Furthermore, one development is that some deals have securitized a mix of both secured assets and unsecured loans, with such deals typically comprising loans that have security over property, land or equipment, as well as unsecured loans"