Patience needed for next NPL wave

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No-one should expect a sudden 2008-style surge, but economic headwinds are expected to eventually translate to a promising opportunity set.

Non-performing loans have been one of the hottest topics in the private debt space ever since the 2008 financial crisis led to an unprecedented movement of bad debts off bank balance sheets. While the market has calmed in the years since, recent developments may see a resurgence in the NPL sector over the next few years.