Update: Market Chatter: BFF Bank Seeks Buyers for EUR1.2 Billion Non-performing Loan Portfolio

MT Newswires · 2d ago
01:28 AM EDT, 08/16/2026 (MT Newswires) -- (Updates to include Fortress Investment Group's response) BFF Bank (BFF.MI) is working on a 1.2 billion-euro securitization of non-performing loans as it seeks to strengthen its capital position, Bloomberg News reported Friday, citing people familiar with the matter. The Italian lender is in discussions with investors including Pacific Investment Management Co. and Pollen Street Capital over the riskiest portions of the portfolio. Fortress Investment Group, Davidson Kempner Capital Management and Cerberus Capital Management have also expressed interest, the report said. The transaction could be priced below the loans' book value, though it is expected to improve BFF's capital ratios. An agreement with buyers could be reached by early November, according to the report. Pollen Street, Davidson Kempner and Fortress declined to comment, while BFF, Pimco, and Cerberus did not immediately respond to a request for comment from MT Newswires. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)