This article looks at the patterns in debt auctions and says this may be the time to be lazy and borrow. Recently the terms have gotten better since collectors have been less aggressive than before. Typically passive borrowers look to make 8% on their debt investments.
The Forbes article goes into the cyclical nature of debt auctions and why the cycles have changed recently. Market conditions play a big role in debt repayment - modern regulations have made the environment more favorable for collectors. But the increase in the number of debt borrowers means there are more investors who can buy debt at discounted rates for quick profit or to resell later.
The debt auction market has always been cyclical with periods of high activity followed by lulls between buyers and sellers. But recent regulations have made it harder to predict market trends. There was a pause from 2017-2019 then an upswing in 2020 due to the COVID-19 pandemic.
In summary, the patterns in debt auctions are still complex and recent changes have only made it more confusing. Market conditions, regulations and the number of buyers all affect the debt collection industry. If you want to know more about this click here