The lender gets to write a secured loan with an excellent risk profile and an interest rate that, on average, generates net profit that is at least as good as other lending opportunities.
From the lender's perspective this is a relatively straightforward transaction. A lender will lend to just about anyone if the spreadsheet numbers work out.
Is it really that good of a risk profile? Some of these assets they are writing against are pretty volatile. I would not write a low interest loan against TSLA shares or commercial office buildings.
What do you think the borrower did with the $hundred-M that they borrowed?
There's only so much you can blow on intangibles. Should there be a major write down in the value of the asset, chances are not bad that there are tangibles to reclaim.
From the lender's perspective this is a relatively straightforward transaction. A lender will lend to just about anyone if the spreadsheet numbers work out.