New approaches to energy credit risk management

The aftermath of the financial crisis led to some innovative approaches to tackling energy credit risk. Pauline McCallion looks at developments and asks whether proposed US and European regulation will help or hinder innovation in this space

Re-tooling credit risk management

The financial crisis bred a new awareness of counterparty credit risk and necessitated a different approach to the development of energy hedging facilities.

While market participants are now more relaxed about counterparty credit, and credit in general is far less constrained than it was in the immediate aftermath of the Lehman collapse, it is certainly still a concern among energy companies and prospective counterparties. This has led to some new approaches and greater flexibility in managing

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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