A recent survey among European fund managers showed that only 3% of investors consider COVID-19 as a significant risk to the growth outlook.2 High and rising vaccination rates in advanced economies are expected to make growth increasingly immune to economically painful stop-and-go disruptions.
The distress has been concentrated among the twothirds of subprime borrowers who have variable-rate mortgages; more than 17 percent of those mortgages are in serious delinquency, about a tripling of the share since mid-2005. 1 Near-prime loans are showing a rise in serious delinquencies as well, although it is much smaller than for subprime.