Credit Research Foundation

SEPTEMBER 27, 2024

It’s been 16 years since the last major economic downturn – the banking crisis that started in 2007 and was in full impact mode from 2008 through 2010. Since then, we’ve weathered the COVID-19 pandemic, which many experts predicted would lead to a wave of defaults and business closures. During that period, the U.S.

Days Sales Outstanding 195

Days Sales Outstanding Bad Debt DSO Default 195

FICO Blog

DECEMBER 8, 2022

FICO® Scores, often an important contributor to underwriting risk management strategies, are designed to provide valuable risk rank-ordering through all economic cycles. Assume an auto finance portfolio’s current underwriting risk management strategy requires applicants to have an expected 24-month default rate less than 3%.

Default 52

Default CECL Credit Risk 52

lsq

NOVEMBER 8, 2022

Seven-percent prime was last seen in December 2007. As money gets more expensive, maintaining discipline around counterparty risk is critical to avoid disruption to a company’s operations. Simply put, higher interest rates drive tighter liquidity and high risk of defaults. That means a prime rate of 7.5 percent in 2023.

Bankruptcy 52

Bankruptcy Credit Risk Default 52