National Bank Benefits by Taking Out the ‘Garbage’
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Credigy Ltd., the distressed-debt firm that got its start chasing delinquent credit-card borrowers in the U.S., has moved beyond collecting on bad loans to become one of National Bank of Canada’s fastest-growing profit contributors.
Credigy, which operates from a suburban office park north of Atlanta, holds almost $1 billion of consumer loans, auto debt and mortgages from the U.S., Brazil, Puerto Rico, Colombia and Spain, and is hunting for more deals in Europe. Half the firm’s revenue is now gleaned from performing loans bought at a discount from banks and other financial firms.