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Debt purchasers set to benefit from consumer delinquencies: Fitch

U.S. debt purchasers are positioned to benefit from rising delinquencies due to improvement in portfolio supply from an increase in non-performing loan (NPL) sales, according to a recent report from Fitch Ratings.

This increase in delinquencies is attributed as a byproduct of mounting recessionary pressures, with higher interest rates and inflation raising the risk of portfolio write-downs, which the firm says reinforces the importance of strong capitalization, pricing discipline and cost efficiency for debt purchasers.

According to the New York Fed, total U.S. household debt rose 2% sequentially in the second quarter of 2022, or $312 billion, to details ⇒

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