credit-risk

When firms implement capital models in line with supervisory standards, a range of interpretative and... Read more Capital Models Benchmarking: A Framework for Counterparty Credit Risk Internal Models

I am trying to calculate the Total Credit Risk capital % for my learning purpose as given below. Assuming adding 1 single loan with different pds. i have noticed one point in the table and have two queries. Point 1: As PD increasing, the highly risky bands gets lower credit risk capital %. Question1: Is there any rational behind this?, why we need to keep lower capital for risky bands? Question2:…

I was wondering if anyone is familiar with how credit default swaps can be used for corp funding and financing. I came across an old case where a bank created a funding structure for a client (asset manager). However, I'm not familiar with how this takes place. Any insight on the above would be greatly appreciated. Thank you, Faisal

Consensus PD data shows Canadian credit risk rising but stabilising — with tariff stress hitting consumer and industrial sectors hardest, and HY deteriorating far faster than IG across provinces. The post Canada Credit Risk Outlook 2026 appeared first on Credit Benchmark .

Americans are carrying more than $1.2 trillion in credit card debt, and for a lot of people, it’s not from splurging. It’s everyday stuff: car repairs, medical bills, groceries. And if you only make the minimum payment, that debt can grow exponentially, sticking around for years. The average credit card interest rate today is close […]

There's a pattern I've seen repeatedly in financial ML: a model achieves excellent predictive performance — AUC above 0.80, stable on holdout — and the team ships it. Then, six months later, someone asks "but why is the model denying more applicants from this postal code?" and nobody has a good answer. Prediction and causation are different things, and conflating them is expensive in credit risk …

Thank you for your feedback and interest in my previous article. Since several readers asked how to replicate the analysis, I decided to share the full code on GitHub for both this article and the previous one. This will allow you to easily reproduce the results, better understand the methodology, and explore the project in more detail.In this post, we show that analyzing the relationships betwee…

Learn how mapping your internal entity list to a Credit Benchmark Identifier unlocks seamless access to consensus credit data, and discover which of three matching approaches best fits your workflow. The post Webinar: Unlocking the Power of CBID – Smarter Entity Matching for Scalable Portfolio Monitoring appeared first on Credit Benchmark .

Most large financial institutions have stress testing programs that appear complete. Scenario design, macro-linkage calibration, and capital projection frameworks all meet DFAST, CCAR, and IFRS 9 expectations on paper. The methodology is sound. The credit data feeding those scenarios is often not. Traditional rating agencies cover only about 10–15% of entities in a typical bank […] The post Credi…

Multi-strategy credit interval fund gives U.S. wealth public & private credit exposure.

Credit Benchmark’s 2026 G7 + China Default Outlook signals rising private corporate default risk amid slower global growth and tight funding conditions, while financial institutions remain more resilient across most markets. The post 2026 Default Risk Outlook: G7 + China appeared first on Credit Benchmark .

Most credit risk monitoring tools serve the rated universe well. Bond spreads, CDS pricing, agency ratings, market-implied default probabilities—the data infrastructure supporting surveillance of publicly traded and rated counterparties is deep, real-time, and well-served by multiple competing platforms. The surveillance gap is elsewhere. Private companies, middle-market borrowers, fund structure…

Understand swaps, futures, and credit derivatives - how they are structured, priced, and used to manage interest rate and credit exposure The post Interest Rate and Credit Derivatives appeared first on Financial Edge .

Here’s why it happens — and how to fix it The post What to Do When Your Credit Risk Model Works Today, but Breaks Six Months Later appeared first on Towards Data Science .

The post Did You Know You Can Navigate Credit Risk Using Multiple Scoring Methods? appeared first on CreditSights .

Understanding how banks use the KS statistic in loan approvals. The post The Kolmogorov–Smirnov Statistic, Explained: Measuring Model Power in Credit Risk Modeling appeared first on Towards Data Science .

The post CreditSights Turns 25: Honoring the Past, Shaping the Future appeared first on CreditSights .

First-lien debt recovery prospect expectations have deteriorated for broadly syndicated (BSL) and middle market (MM) US corporate issuers, Fitch says in a new report. Recovery ratings fell within Fitch’s BSL... The post First-Lien Debt Recovery Prospects Deteriorate for Broadly Syndicated and Middle Market Issuers, Fitch Says appeared first on CreditSights .

. This report updates the share of the Credit Suisse Leveraged Loan Index with high-profile covenant loopholes associated with particular borrowers—J. Crew, Serta, Chewy and Envision—as of Sept. 30 based... The post Lens on Loopholes Q3 2023 Update: Share of Index Loans with J. Crew / Serta / Chewy / Envision Loopholes Across the Index and a Breakdown by Sponsor Group appeared first on CreditSigh…

Marks & Spencer’s credit rating has been upgraded from “junk” to “investment grade” as the high street stalwart’s turnaround propels it back into the ranks of Britain’s top flight companies. The post M&S Back In Fashion With Credit Upgrade appeared first on CreditSights .