Unrated asset-backed finance (ABF), or loans that have not been evaluated by a credit rating agency, is often mistaken for “riskier.” In reality, the picture is more nuanced: many of these loans are backed by strong collateral but fall outside traditional ratings models. Because this segment of the market is overlooked by ratings-sensitive investors, it can offer income-rich returns in a less crowded part of the private credit market. With skilled managers who bring scale, structuring expertise and disciplined risk controls,  investors can unlock compelling value.