What if your loan deadline got extended indefinitely? The whole economy would suffer. But that's what some NBFCs are currently doing. Here's how their scheme works.
Clever way of reducing losses by NBFC. But AIF's are to be blamed more than the NBFC's as they are assuming risk by taking positions in these bad loans irrespective of the background of the borrower. But, if they are willing to bet on it and the investors in AIF's have been provided with the information on risk they are taking then what's wrong in this setup.
Clever way of reducing losses by NBFC. But AIF's are to be blamed more than the NBFC's as they are assuming risk by taking positions in these bad loans irrespective of the background of the borrower. But, if they are willing to bet on it and the investors in AIF's have been provided with the information on risk they are taking then what's wrong in this setup.
A detailed article on what and where AIFs invest would be an enlightening read.
A lucid-well crafted post