Currency Risk Hindering Polish Mortgage Portfolio Sales - Oliver Fochler In SCI

Recent speculation that Deutsche Bank could be selling its Polish unit has highlighted the FX issues associated with shedding non-core mortgage assets in the country. Roughly a third of Deutsche Bank Polska's assets are said to be euro- and Swiss franc-denominated mortgages, the sale of which is likely to be challenged by the Polish regulator in an effort to maintain financial sector stability. Poland has been grappling with Swiss franc- and euro-denominated mortgage loans since the financial crisis. More than half a million Poles took out Swiss franc mortgages before the crisis to benefit from lower Swiss interest rates. Stone Mountain Capital ceo Oliver Fochler notes that while the books are "highly distressed", based on the appreciation of the Swiss franc, the underlying credit quality "might be good". Interview with Oliver Fochler was covered on 21st November 2016 in Structured Credit Investor (SCI) under 'Currency Risk Hindering Polish Mortgage Portfolio Sales' (website requires registration).

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