MFS collapse and the double pledging risk

Kelly Rothwell and Fiona Henderson of CMS examine how the collapse of Market Financial Solutions, amid allegations of fraud and double pledging of collateral, highlights structural vulnerabilities in asset-based lending, particularly where equitable assignments and lighter-touch private credit underwriting prevail, and underscores the need for tighter verification, monitoring, and enforcement practices to mitigate the risk of competing claims over the same assets.

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