Uncertainty refers to a situation where there is a lack of definitive knowledge or predictability about an outcome or the state of affairs. It encompasses the degree to which an individual or system is unable to provide a precise prediction or specific information regarding future events or conditions. Uncertainty can arise from various sources, including incomplete information, inherent variability, or the complexity of systems. In scientific and mathematical contexts, uncertainty is often quantified using statistical measures, reflecting the potential deviation from an expected value. Similarly, in decision-making, it represents the risk and ambiguity involved when choices are made under unclear circumstances. In everyday life, uncertainty can manifest in various forms, such as personal decisions, economic forecasts, and scientific research, affecting how individuals and organizations approach problems and uncertainties they face.
Mary Beth Fisher, a senior fixed income strategist at Santander, has observed a concerning trend of increasing delinquency rates. This shift in collateral performance is particularly evident in Commercial Real…