Structured credit in a crisis COVID-19 – Impacts on structured credit and valuation challenges

The coronavirus 2019 (COVID-19) outbreak has resulted in unprecedented supply and demand shocks to the world economy. Despite central banks and governments’ interventions, many economies remain frozen, supply chains broken, and businesses and households exposed to sustained financial pressure. In that context, securitised credit instruments are facing market, operational, legal, and economic challenges, which will make their valuation harder.