How safe is your loan security? That question is going to be asked more often as weakening economy makes defaults more common
Secured private credit is more protected than other debt classes, especially should recovery rates fall as defaults rise.
With the world economy facing both rising inflation and slowing growth, default rates are expected to rise after being at historic lows the past few years. As a result, lenders are now going to have to pay more attention to the quality of the securities offered up by borrowers, after many years when these matters weren’t much of a concern.Download PDF