TDX Group Launches Debt Resale Services

TDX Group, the UK?s largest debt broker (www.tdxgroup.com), has extended its debt sale brokerage offering into the secondary market by launching TDX Resale Services. By enabling debt sale between purchasers, the move is set to stimulate the growth of the secondary market in the UK.

?The emergence of an effective secondary market is essential for the continued sustainable growth of debt sale in the UK. However, for creditors and purchasers alike, it will require a change in mentality and approach to debt sale. Creditors will need to address the issues of brand management and post-sale support. Purchasers will need to understand the value of resale, protect confidentiality and determine an effective mechanism for sharing the data needed to sell with potential competitors,? says Garry Evans, Head of Debt Sale Brokerage at TDX Group.

?TDX Group?s unique intermediary position allows us to address these issues and manage the interests of both creditors and purchasers whilst enabling the resale market to develop. As we sell over 40% of the debt in the UK market, we have an unrivalled database of sellers, buyers and pricing,? continues Evans.

Most debt transactions in the UK currently are primary sales directly from creditors to purchasers. TDX Group estimate debt resold between purchasers is currently less than 7% of the total market but that it will grow to over 20% of the market in 2007. The emergence of a large secondary market in the US has been an important part of the development of that market and has helped improved portfolio returns, provided an effective risk management tool and ultimately enabled higher and more stable pricing for original sales.

Access to an established resale market in the UK would provide a number of these benefits to purchasers including: providing an alternative liquidation strategy; confirming the value of debt held on the balance sheet; helping generate cash to fund future sales and limiting downside risk on large primary purchases. Over time, these benefits translate into advantages for the original creditor sellers such as improved pricing and more stability on that pricing.