Saturday, February 11, 2012

Non-Performance

My supervisor, explaining a deal to me:
“So these guys are trying to sell off an NPL portfolio.”
“What’s NPL?” (momentarily baffled because my first association with NPL is to something else)
“Non-performing loans. They acquired these NPLs and now they’re trying to sell them off, but they’re taking a loss because the yield has been low.”
“Low relative even to expectations at the time when they were acquired?”
“Yes. They’re non-performing non-performing loans.”