In order to differentiate between secured and unsecured lending in the pricing of loans, it is important that lenders have the ability, as a last resort, to realise the underlying security if the borrower defaults on the loan.
In either case, the strong USD dollar story had begun to form a solid base – market caused the DXY to start to ratchet up and the 10-year Treasury yield to begin falling precipitously.1 This fundamental story was not, however, without challenge.