Bulk loan sales by MBSD

Bulk Sales Market

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The Outright Sale method tended to be the most popular due to the simplicity and the finality of the transfer method. Commencing with the KAMCO 98-1 Program, KAMCO and Korean financial institutions have sold off a great deal of NPL's, predominantly through approximately thirty bulk loan sales. The bulk loan sales were structured in various ways, including Outright Sales, Residual Retention Schemes and Equity Partnership Sales. Having joined the market relatively late since November 1999, domestic investors have recently become more active. Participants of NPL bulk sales included international funds, investment banks and domestic investment companies. Notably, Lehman Brothers, Lone Star, Goldman Sachs and Morgan Stanley have been major investors in the market. Other bulk loan sales participants have included Merrill Lynch, GE Capital, Salomon Smith Barney and other international institutions.