Market / Credit
Asset-Backed Finance: Nuances of Consumer Lending

Consumer lending plays a critical role in asset-backed finance (ABF), but making informed investment decisions requires more than surface-level data. 

07.29.2025

Consumer lending plays a critical role in asset-backed finance (ABF), but making informed investment decisions requires more than surface-level data. This insight explores why granular data by borrower cohort and credit product, combined with qualitative underwriting, is key to understanding true credit risk. It also highlights why our team prefers exposure to essential-purchase lending over automated, subprime-heavy strategies.