|
News Index
Next
Previous
TDX Group has extended its debt sale brokerage offering into the secondary
market by launching TDX Resale Services.
By enabling debt sale between purchasers, the move is set to stimulate the
growth of the secondary market in the UK.
Garry Evans, Head of Debt Sale Brokerage at TDX Group, commented: “The emergence
of an effective secondary market is essential for the continued sustainable
growth of debt sale in the UK.
"However, for creditors and purchasers alike, it will require a change in
mentality and approach to debt sale.
"Creditors will need to address the issues of brand management and post-sale
support.
"Purchasers will need to understand the value of resale, protect confidentiality
and determine an effective mechanism for sharing the data needed to sell with
potential competitors,”
“TDX Group’s unique intermediary position allows us to address these issues and
manage the interests of both creditors and purchasers whilst enabling the resale
market to develop.
"As we sell over 40% of the debt in the UK market, we have an unrivalled
database of sellers, buyers and pricing."
Most debt transactions in the UK currently are primary sales directly from
creditors to purchasers.
TDX Group estimate debt resold between purchasers is currently less than 7% of
the total market but that it will grow to over 20% of the market in 2007.
The emergence of a large secondary market in the US has been an important part
of the development of that market and has helped improved portfolio returns,
provided an effective risk management tool and ultimately enabled higher and
more stable pricing for original sales.
Access to an established resale market in the UK would provide a number of these
benefits to purchasers including: providing an alternative liquidation strategy;
confirming the value of debt held on the balance sheet; helping generate cash to
fund future sales and limiting downside risk on large primary purchases. Over
time, these benefits translate into advantages for the original creditor sellers
such as improved pricing and more stability on that pricing.
For more information contact the TDX Group Debt Sale Brokerage team at
debtsale@tdxgroup.com
Source:
Credit
Control Journal
|
