To contain COVID-19 and save lives, the government has required many people to stay home and not report to work. To help those people manage their financial obligations, the government is also mandating different types of payment forbearance relief. That relief resembles a stay or moratorium on enforcement and is increasingly pervasive and generally unprecedented.
These actions by definition cause a decrease in the cash flow and value of these financial obligations in the hands of the holder regardless of whether the holder is an originator, financial intermediary, a fund or REIT or securitization issuer.
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