While lessons learned from previous crises suggest that well-designed structures are resilient under stressed circumstances, the COVID-19 crisis presents new challenges for European ABS.

Governments across the globe continue to announce measures in an attempt to minimise the toll on human health and economies arising from the COVID-19 pandemic. Measures include forbearance schemes including payment deferrals to prevent large-scale defaults by consumers, small and medium enterprises (SMEs), and in some cases, larger corporates. In addition, borrowers and lessees are requesting forbearance irrespective of whether such requests are backed by state measures.