Although the monthly enrollment rate has slowed significantly, the percentage of accounts in payment relief programs rose to unprecedented levels in May and remained at elevated levels in June. The take-up rate differs by asset class – mortgages, autos, and personal loans have higher participation rates than bankcards.

Extraordinary times call for extraordinary measures. And the Fed continues to respond appropriately. On April 9, the Federal Reserve once again drew on its full range of authorities to expand and establish lending facilities to provide up to $2.3 trillion in loans to stabilize households, communities and businesses of all sizes during the pandemic crisis and to “ensure that the eventual recovery is as vigorous as possible”.

Aircraft ABS are currently insulated from coronavirus-related disruption in global travel. Still, a prolonged slowdown in global air traffic would negatively impact aircraft ABS structures.

SFA's recent CLO white paper explores balancing crucial lending with financial safety and soundness.