Join us for an in-depth analysis of CRE loan performance and credit risks under Moody’s latest economic and real estate scenarios.
• Chris Henkel, Senior Director, Moody's Analytics REIS
• Laurent Birade, Senior Director, Moody's Analytics
• Sumit Grover, Director, Moody's Analytics
• James Partridge, Director, Moody's Analytics
This paper compares results from CECL adopters that follow the CECL framework, non-adopter banks that follow the Incurred Loss Model (ILM) framework, and highlights the differences.
In this paper, we provide an update, based on 14 top financial institutions, of our triangulation benchmark as of September 30, 2020 to understand the range of reserve action to be expected for Q3 2020.
Moody’s Analytics has developed a framework that addresses areas of uncertainty and provides ongoing comparability analysis.
In this paper, we set out to estimate, based on 14 top financial institutions, a lower- and upper-bound current expected credit loss (CECL) estimate as of March 31, 2020.
In this paper, we provide an update to the previously published research on our triangulation framework and how the set of banks in our select peer group performed relative to expectations of increased reserve build.
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?
In this paper, we set out to triangulate on a reasonable range of reserves for the Current Expected Credit Loss (CECL). This methodology can be highly useful in times of uncertainty.
Nobody expected the end of the economic cycle to happen so suddenly, but adjustments will be required given the materiality of the events unfolding. How can you quickly adjust for an ever-evolving scenario where today’s assumptions may not hold tomorrow.
The traditional loss-minimizing approach to managing corporate trade credit can keep write-offs low but may be overly conservative.
The COVID-19 pandemic is dramatically impacting consumer credit portfolios.