What's the biggest risk in the corporate loan market?, page-2

Logic suggests that short term it will be defaults on interest payments as the borrower's cash flow dries up. This of course will result in a lower yield for our investment. If corona goes on long enough some borrowers may go to the wall and default on their loan which will further lower our yield and if enough of them go bust cause a write down of capital. I don't think too many see the problem to be a general cut in rates per se.

I guess we'll now find out if the managers are as good at assessing loans as we've been lead to believe.