This best practice guide explains the data format and minimum data requirements of the NPL Markets platform to sell portfolios of illiquid loans.
Best Practice Guide on Portfolio Data Requirements
By Burkhard Heppe
Published Monday 16 December, 2019
You can access the full technical paper by clicking here:
NPL Markets - Best Practice Guide on Portfolio Data Requirements
The data standard implemented by the NPL Markets platform follows the EBA NPL template with minor modifications. The platform allows buyers and sellers to upload standard data files with loan-level data for validation, due diligence and pricing.
The upload will succeed and will generate meaningful high-level valuation results if the uploaded data tape is in standard format and a minimum number of data fields are provided. Where data do not follow the standard of the EBA NPL template, data providers can use the data mapping tool of NPL Markets to create a standard input file.
Importantly, we do not require all fields defined by EBA as critical to be delivered. In our experience, most existing portfolios meet our minimum requirements. The key benefits of the platform include the support of the data preparation process and to test the impact of additional information provided on pricing. The article first describes the EBA NPL template and the classification of importance provided by EBA. We then define the minimum data fields required to upload a transaction onto the platform. Finally, we explain the most important fields required for a meaningful initial valuation and comment on additional data that could improve the pricing further.
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