Intesa Rubbish tip

Banca Intesa’s attempt to sell a E10bn portfolio of non-performing loans (NPLs) in one transaction is a milestone for the distressed debt market. The mooted deal dwarfs recent sales of distressed debt by the likes of Dresdner Bank and Abbey National. It could clean up Intesa’s balance sheet instantaneously. Still, investors might ask whether this is the best way of extracting value from the assets. Intesa should find plenty of demand for the portfolio. Merrill Lynch and Fortress Investment Grou...