Collateral-backed lending: Private credit’s ‘sweet spot’

The Punchline

The article discusses the potential growth in asset-based finance (ABF) in the US second-lien mortgage market, which could surpass $2.6 trillion. It highlights collateral-backed lending as a significant opportunity within private credit, showcasing its 'sweet spot' for investors looking for stable returns.

Why You Should Read This

The insights provided on collateral-backed lending can help investors identify emerging trends in asset-based finance and make informed investment decisions.

Who This Is For

This article is tailored for institutional investors, fund managers, and financial advisors interested in private credit and mortgage-backed securities.

Investor Implications

With the anticipated growth in the ABF sector, investors could find lucrative opportunities in collateral-backed lending, which may offer enhanced security and risk-adjusted returns. Understanding this landscape is crucial for asset managers aiming to optimize their portfolios.