Last November 27th, Hipoges had the opportunity to participate as a Block Sponsor in the 7th NPL Iberia conference organized by SmithNovak. This prestigious event took place in the iconic Edificio España, located in Madrid’s Gran Vía, and brought together key players of the sector in Spain and Portugal.
The 7th NPL Iberia conference attracted over 180 delegates from 90 companies. In addition, more than 10 countries were represented and a total of 31 speakers participated.
SmithNovak events stand out for providing a unique space for networking and knowledge-sharing, bringing together professionals from key sectors to explore new collaborations and strategic partnerships.
In this edition, Hipoges was represented by some outstanding leaders such as Claudio Panunzio, our Managing Partner Co-CEO, Margarida Maia Chief Services Officer and Ángel Alcázar Chief Operating Officer. There were also two key figures who played a prominent role as speakers, Hugo Velez also Managing Partner Co-CEO of the company and Pedro Valle-Domingues Chief Business Development Officer.
Panels at the 7th NPL Iberia Conference by SmithNovak
The event featured a total of five insightful panels addressing essential topics for the sector. Between each session, time was set aside for further networking and well-deserved coffee breaks.
- Panel 1 – Iberian Market Update 2024-25
The conference addressed various aspects of the current macroeconomic conditions in Spain and Portugal, focusing on household debt, corporate insolvencies, and trends in the loan market. The following is a summary of the key points discussed, with the participation of Hugo Velez:
Macroeconomic conditions in Spain and Portugal: Spain is experiencing a positive economic moment, with notable growth driving various sectors. The situation of NPL (Non-Performing Loans) is highly favorable, standing at only 3.3%, indicating good credit risk management and an improvement in asset quality.
Loan transaction values and types: The real estate sector is going through a period marked by high prices, suggesting an increase in the value of available assets and sustained demand. Additionally, loan recovery rates are exceeding expectations, which indicates that the economy is recovering better than anticipated, benefiting both banks and investors.
NPL Outlook and Deleveraging: An increase in debt restructurings is expected, reflecting a trend toward seeking solutions for companies and households facing financial difficulties. Additionally, the level of NPLs is anticipated to be lower than in the past, thanks to implemented risk mitigation measures and overall economic improvement.
Focus on RPL and Secondary Loan Market: In 2024, the main focus has been on reperforming loans (RPL), which were previously NPLs but have become performing again due to restructuring efforts. By 2025, this type of service is expected to surpass other loan categories, marking a significant shift in the approach of banks and investment funds toward managing assets with recovery potential.
- Panel 2 – Servicing: Operations & Technology
Discussion on how Servicers reduce costs, improve efficiency and create new business lines.
- Panel 3 – Buy-side Panel: NPLs, RPLs, Single Tickets
This panel focused on evaluating opportunities beyond traditional NPLs, analyzing other types of loans and assets available in the Madrid and Lisbon markets. Below is a summary of the key points discussed, with the participation of Pedro Valle-Domingues:
Opportunities Beyond NPLs: The discussion highlighted reperforming loans (RPLs), single-name loans, sub-performing loans (SPLs), real estate-owned assets (REOs), and performing loans (PLs), as well as opportunities in the secondary market. These assets are gaining prominence as new investment opportunities in Madrid and Lisbon, signalling a trend toward diversification beyond traditional NPLs. It was also noted that the level of NPLs is declining across Europe, with a shift toward SPLs, RPLs, and UTPs (Unlikely to Pay), marking a significant trend in the market.
Investment Demand and Loan Supply: There is an imbalance between dry powder (uninvested capital) and the limited supply of loans in the market. While there is a substantial amount of capital waiting for investment opportunities, the supply of loans remains constrained. Banks are assessing how to continue selling assets, and competition for high-quality assets is driving up bid prices. Additionally, ticket sizes have increased slightly, reflecting interest in higher-value assets.
Evolution of Investor Risk Appetite: Over the past year, a shift in investor risk appetite has been observed, with some funds willing to take on more risk to achieve higher returns. However, uncertainty around interest rates and the possibility of rate cuts remains a decisive factor. A significant reduction in rates could act as a catalyst for an increase in transaction volumes. Moreover, the European servicing directive aims to reshape the current processes, which could impact investment appetites and strategies.
Future Opportunities in Iberia: Panellists noted that significant opportunities could emerge in the Iberian region over the next year, particularly in the RPL market and real estate assets. Both Madrid and Lisbon remain attractive to investors, especially in the segment of restructured assets or those with significant recovery potential. Key differences between Spain and Portugal were also highlighted: Spain’s market is approximately four times larger than Portugal’s, and Portugal suffers from a lack of available product, which limits some opportunities.
- Panel 4 – The Portuguese Market
Assessment of the state of the Portuguese economy and bank default rates.
- Panel 5 – The Spanish Market
Outlook on the evolution of sales portfolios in 2025 compared to 2024.
Networking and Digital Tools at the 7th NPL Iberia Conference
The event was not only notable for its diverse sessions, but also for its focus on networking. Attendees were provided with an official conference app that allowed them to schedule meetings, view session calendars and connect through an internal chat. In addition, this tool will remain available for at least 20 days after the event, enabling continued networking opportunities and access to exclusive content.
For sponsors, the App also offered the option to create customised pages to share reports, videos and offers, optimising the attraction of potential clients.
Hipoges: Leadership and Commitment
For Hipoges, participating in events of this magnitude is essential. It allows us to reinforce our position as leaders in asset management in Spain and Portugal and stay at the forefront of market trends and solutions.
The 7th NPL Iberia Conference was not only an opportunity to share our expertise, but also to continue building strategic alliances and consolidate our presence in a sector in constant evolution. Beyond this event, the company actively participates in a wide variety of conferences throughout the year.