Rosen says the massive fiscal stimulus stabilized the public capital markets, including the asset backed securities market and the stock market. 

"I think when you juxtapose that against the private market, it's really like two different living beings," Rosen says. "The public markets have access to those capital sources that can stabilize and provide some comfort to the investor base, whether it be money managers, insurance companies or hedge funds."

There also hasn't been the same level of clarity or price discovery in the private market, according to Rosen. "I think there's a lot more hesitancy away from the public markets in terms of what stability looks like right now," Rosen says.

Some smaller firms received help from paycheck protection program loans, forbearances and interest holidays, but Rosen thinks more is needed, and another stimulus is significant for the economy. "The stimulus is really being used at this point to shorten and lessen the impact from a recession rather than trying to prevent it outright," Rosen says. "I think it is a foregone conclusion that we are either in or going into one.  The question is: how deep does it go?"

The ultimate recovery depends on the unemployment situation. If the recent spike in COVID-19 infections leads to massive job losses, that situation won't improve for a while because businesses are once again closing.

Right now, Rosen says there is a minimal appetite for asset backed securities, commercial backed securities, residential mortgage-backed securities and corporate bonds.

"It is not that there is minimal appetite, it's more that the yields bounced back so violently that investors are now again looking for private opportunities," Rosen says. "Sitting where we are right now with a very strong capital market environment, money is once again looking for private opportunities because the capital markets have recovered quickly."

So, far there haven't been many distressed opportunities. "There have been some, but the Fed actions to date have largely pushed those opportunities out at least to the third and fourth quarter," Rosen says. "

Like many observers, Rosen thinks distressed will eventually emerge, especially in retail and hotel.  "Keys will be handed back, and lenders will become owners in some cases," he says. "There is always a chance that something changes, and the economy rips back up, but I think that is less and less likely at this point."