VPC - Underwriting The Underwriters: Finding Opportunity In Consumer Loans
2024-05-31 11:40:00 ET
Summary
- As banks continue to pare back financing activities, consumer lending is taking up more space in investors’ private credit allocations.
- With interest rates set to stay higher for longer, is now the right time to add exposure to consumer debt?
- Lenders have far less control over the direction of the economy than they do over loan underwriting. If growth slows and unemployment increases, losses may rise.
By P.J. Collins
Underwriting The Underwriters: Finding Opportunity In Consumer LoansWhen it comes to investing in consumer debt, headlines may be misleading. We see opportunity.