Alternative asset manager Balbec Capital LP, in collaboration with Goldman Sachs, is preparing its first Spanish securitizations worth €800 million. This move involves bundling mortgage loans acquired from Spanish banks into residential mortgage-backed securities (RMBS) with varying risk levels. These loans, purchased over the past three years from entities like Banco Sabadell SA and Lone Star Funds, are set to be repackaged in two transactions of approximately €400 million each, scheduled for release in 2025.
The securitization comes as the European asset-backed securities market sees renewed momentum, supported by potential reforms and increased institutional interest. The European Commission is exploring measures to make it easier for banks to offload loans, addressing a market that has nearly halved in size since its 2008 peak. Balbec has prior experience in European RMBS markets, including a €700 million issuance in Ireland, and has been highly active in the U.S., completing 20 residential mortgage deals in 2024.
Spanish banks have been offloading re-performing loans to manage risk and meet regulatory requirements. Balbec’s initiative aligns with these market dynamics, leveraging its expertise in consumer and residential loan portfolios. With over $7 billion in assets under management, the firm has also expanded into the Portuguese market, acquiring a €4 billion portfolio earlier this year. This latest move underscores Balbec’s commitment to tapping into opportunities within southern Europe’s financial landscape.
