Market Analysis: Effective credit risk analysis

Market participants are conducting credit risk analysis on a growing number of counterparties, many of which are smaller, non-public and unrated firms, says S&P.

Increased default rates across a wide variety of asset classes experienced in the recent financial crisis and subsequent recession highlighted the need for robust credit analysis. Chief in the minds of credit managers are fundamental questions about whether they will get repaid when they extend credit and how to efficiently and effectively make that determination.

Market participants need better tools with transparent, innovative analytics and accurate fundamental data in order to quickly assess

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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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