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BAI Banking Strategies

19.05 - COVID-19 as a real-life stress test for credit risk

17 Nov 2020

Description

Financial institutions have experience dealing with recessions that hammer businesses and elevate default risk among borrowers. But 2020 offers a new wrinkle — an instant collapse in economic activity due to a deadly pandemic. On this podcast, Laurent Birade and James Partridge, both experts in credit risk analysis at Moody’s Analytics, discuss the challenges of extreme tail events and how going through COVID-19 may help improve future risk modeling.

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