Credit loss forecasting models are only as effective as the data on which they were built, and few, if any, were designed to capture the effects a sudden pandemic would unleash on the U.S. economy. In times like this, how are financial institutions determining the right amount to set aside for future credit losses?
Join us for an insightful discussion and a case study on an approach to quantitatively model credit risk in a range of economic scenarios, and adjust the results to capture information that models may not consider.
• Alex Cannon, Associate Director, Moody' s Analytics
• Christian Henkel, Senior Director, Moody's Analytics REIS
• COVID-19 Impact Assessment Tool
In this article, we offer some criteria to consider when evaluating a CECL solution provider, along with some of the less obvious, “hidden costs” of CECL that institutions should examine before selecting the best partner to fit their needs.
Moody’s Analytics has developed a framework that addresses areas of uncertainty and provides ongoing comparability analysis.
Join us for an in-depth analysis of CRE loan performance and credit risks under Moody’s latest economic and real estate scenarios.
This paper discusses how different economic impacts from the crisis could quantitatively be incorporated into allowance models today as an overlay. Our aim is to provide some insight into how institutions are tackling this challenge.
The COVID-19 pandemic has pushed many commercial entities to increase their borrowing and drawdown on their lines of credit. We use bank call report data to analyze the potential impact to capital levels at US financial institutions.
Join us for a comprehensive presentation on the state of the U.S. CRE market, and the impact on measures of credit quality.
Volatility has risen significantly in financial markets, driven by COVID-19. How might this affect US multifamily and commercial real estate (CRE) transaction markets? What are the mechanisms through which panic and a flight to safety will hurt some markets but benefit some players?
Employing a data-driven approach to risk rating commercial loans has gone from a nascent idea to an established practice, allowing financial institutions to make informed decisions, improve profitability, and better identify trends in risk. Join us for an in-depth discussion on leading practices and lessons learned from a decade of enhancing the process of risk rating commercial loans.
Learn how data and technology are being used to improve CRE lending and investment decisions…and how to motivate your underwriting staff!
The new CECL accounting standard requires institutions to incorporate forward-looking information in their estimate of expected lifetime losses.