Credit risk

Fannie Mae to relaunch credit risk transfers

Fannie Mae announced that he was going to restart his credit risk transfer program by the fourth quarter of 2021, following proposed changes to its capital rule. The company said it plans to transfer mortgage credit risk through its Connecticut Avenue Securities and Credit Insurance Risk Transfer programs. The announcement follows adjustments Federal Housing Finance […]

Credit risk

An investigation into machine learning in credit risk

An Investigation of Machine Learning in Credit Risk – Journal of Credit Risk Machine learning algorithms have come to dominate several industries. After decades of resistance from examiners and auditors, machine learning is now moving from the research bureau to the application stack for credit scoring and a range of other credit risk applications. This […]

Credit risk

Fannie Mae plans to restart credit risk transfers in 2021 – NMP

The Federal National Mortgage Association, or Fannie Mae, on Monday announced plans to resume credit risk transfer (CRT) transactions in the fourth quarter of 2021. Fannie Mae suspended its CRT transactions in March 2020, after the Federal Housing Finance Agency (FHFA) developed a framework requiring high capital requirements for Fannie Mae and the Federal Home […]

Credit risk

S&P views retiree medical benefits as a credit risk for states

S&P Global Ratings has identified state underfunding of retiree medical benefits as a key credit risk for states. States continued to severely underfund their OPEB plans and unfunded liabilities increased in fiscal 2020, S&P analysts reported in their annual survey released on Monday. During the economic expansion leading up to the pandemic, few states pursued […]

Credit risk

FHFA capital changes could stimulate credit risk transfer issuance

The Federal Housing Finance Agency revaluation Capital rules for government-sponsored companies are expected to increase the use of credit risk transfers, observers said. Fannie Mae a has not entered into any new CRT offers since March 2020, while Freddie Mac’s broadcast pace has been slower than in the past. Both agencies were reacting, in part, […]

Credit risk

Using AI for Credit Risk Assessment to Improve Results

With American consumer debt climb to over $ 14 trillion, to avoid costly defaults, lenders need to filter credit risk more accurately than ever. Traditional portfolio analysis is not enough to understand the complex factors that contribute to credit risk. Instead, lenders need to take a more holistic approach to assessing the financial health of […]

Credit risk

Operational and Credit Risk Management Lessons for Exchange Members

SGX RegCo’s Boon Gin Tan and Grace Mok discuss the results of a survey of exchange members. A new guide to managing credit risk has also been published. A key function of capital markets is to enable market participants to manage their exposures to various risks through risk transfer. Clearing and trading firms that are […]

Credit risk

Credit risk funds top ranking with 8.4% returns, data shows

Over the past year, even as returns for most debt fund categories have fallen below 5%, credit risk funds – which invest in lower-rated papers – have delivered returns. 8.4%. A recovery in the economy, better business health and improved upgrades / downgrades ratio helped returns, experts said. The mutual fund industry has not experienced […]