The 9% of borrowers defaulting stat cited in the title is not the same as 9% of the loanbook defaulting.

As stated in the article, 9% is the number of borrowers that defaulted, which was concentrated in smaller borrowers (thus smaller loans).

And then, again, you can say probably half of the dollar amount of those defaults are recoverable.

Bond defaults spiked to around 6% in aggregate in 2008, to use a worst case example.