英语翻译ASSESSMENT OF THE ASIAN NPL MARKET AND ITS OPPORTUNITY T

英语翻译ASSESSMENT OF THE ASIAN NPL MARKET AND ITS OPPORTUNITY The best way to grasp the scope of the Asian NPL market is to break it down by country or region,as each of them is in a different stage of its restructuring process.Economic development,political systems,cultural and social norms,and other factors play a major role in shaping the components of the restructuring effort in each individual country,as well as the balance of power among the parties involved at all levels.Japan Japan has been one of the region's sickest patients.The prolonged economic recession in that country put a lot of strain on the corporate sector.Due to its complex inter-company ownership and financial structures,lending standards have often been less than prudent.Its well-developed legal system,however,is relatively effective at facilitating collateral repossession as well as the repayment work-out process.Like most reforms in Japan,the balance sheet clean-up was initially delayed by a number of years.Foreign investors stood ready to participate in NPL purchases as early as 1993,whereas the Japanese government did not start putting pressure on the banks to dispose of bad assets until 1997.At that point,the problem escalated to a level where the banks had to sell the loans or go bankrupt.They chose to sell,and foreign investors bought with tremendous ferocity.In the following years,particularly in 1998 and 1999,the banks embarked on a balance sheet clean-up of unprecedented magnitude,selling an estimated $600 billion worth of paper.Patience finally paid off for foreign investors,primarily investment banks and private equity and hedge funds focusing on distressed securities,who were able to acquire assets at significant discounts to their face value.In one of the transactions,Goldman Sachs and Lone Star,a U.S.private equity fund,ended up becoming the biggest owners of golf properties in Japan.Deals completed during those years produced handsome returns for investors who had the patience and optimism to establish the infrastructure in Japan,and wait for several years for the government to pull the trigger on sales.At present,an estimated $330 billion of non-performing assets remain in Japan (see Exhibit).However,as the country's economy is beginning to recover,local players have also shown interest in this space.Competition for deals has intensified,which only means one thing for returns--they have been falling.However,barriers to entry in this market are high--many auctions are invitation-only and it takes years of building relationships to get on the auction invitation list of Japanese financial institutions.Judging by the substantial remaining supply of loans and the still relatively limited competition,compared to the more developed markets,the opportunity cannot be over yet,and skillful investors who know how to shift strategy in the face of changing market winds can continue to deliver returns.