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    CECL-Tunnel

    Non-bank Players are Ready for CECL — Are Banks?

    The initial intent of the CECL guidelines was to make loan-loss allowances more reactive to the credit environment. By setting aside greater allowances, organizations would be better prepared for a default.

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    The Changing Climate of Credit Risk Management

    While bankers are increasingly managing risks related to changes in policy and technology (also known as transition risk), physical risks are not necessarily an obvious set of primary factors for banks' commercial credit portfolio managers originating credit with maturities of three to seven years.

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    Weekly Market Outlook: Optimism Rules Despite Unfinished Slowing of Core Business Sales

    The market value of U.S. common stock has been setting new record highs with regularity. The market appears to be supremely confident of two things.

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    Weekly Market Outlook: Baa-Rated Corporates Fared Better in 2019

    At the end of 1999, the $510 billion of Baa-rated bonds approximated 24% of the $2.098 trillion of outstanding investment-grade bond obligations of U.S. corporations.

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    Weekly Market Outlook: Richly Priced Stocks Fall Short of 1999-2000's Gross Overvaluation

    All else the same, the market value of U.S. common equity needs to rise by another 28% before it matches the severity of its gross overvaluation of 1999-2000.

    Webinar-on-Demand

    Moody's Analytics Webinar: Getting Smarter with Every Spread – Automate your Spreading Process

    Most lenders would agree that spreading is an important—but time-consuming—manual function. What if you could automate data collection and spreading so you could spend more time on valuable work, or with your clients?

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    Weekly Market Outlook: Coronavirus May Be a Black Swan Like No Other

    A coronavirus pandemic would be even more of a “black swan” than the global financial crisis and Great Recession of 2008-2009.

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    How Corporate Credit Might Burst an Equity Bubble

    Highly leveraged corporate balance sheets have often been cited as one of the greater threats to both the most richly valued U.S. equity market since 2000 and a record-long business cycle upturn.

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    Moody's Analytics Wins an Artificial Intelligence Award

    The use of analytics to make decisions has grown increasingly sophisticated over the last few years, with the incorporation of machine learning and artificial intelligence playing a major part. Moody's Analytics gives firms the tools they need to make better, faster decisions.

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    Weekly Market Outlook: Positive Earnings Outlook Requires Flat to Lower Interest Rates

    After shrinking by 0.6% year over year during January-September 2019, yearlong 2019's core after-tax profits may be unchanged annually, at best.

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    Cards and CECL estimates

    Recent CECL impact disclosures point directly to credit cards as the largest driver of the allowance. We can confirm those recent disclosures by looking at the consumer default volumes chart in Figure 1,which clearly point to the credit card segment as being one of the largest contributors of loss today.

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    PCD assets post-CECL: The real-world implications of an accounting change

    One benefit CECL will bring to the accounting space is moving away from the complicated and burdensome accounting for Purchase Credit Impaired (PCI) assets.