- First, the majority of levered loans underwritten prior to this credit cycle have already been charged off.
- Second, loans that have been more carefully underwritten in the 2008-2010 period are now a larger part of the book.
- Finally while the level of unemployment remains high, there is unlikely to be a rapid flow into unemployment in the manner seen in 2008-09 when the unemployment rate doubled from 5% to 10%.
Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.