Navigating Asset-Backed Finance Risks

This chapter explores the challenges of risk management in junior capital investments and asset-backed finance, emphasizing the need for robust strategies amid changing market dynamics. It discusses the retreat of banks from asset-backed finance, creating opportunities for private lenders, and the role of insurers in this landscape. The conversation highlights the complexities of unrated investments, underscoring the importance of disciplined underwriting and extensive market knowledge for informed investment decisions.