credit risk Archives - CFO

Risks Mount for Banks and Non-Banks Alike

Risks Mount for Banks and Non-Banks Alike

Tight spreads and growing liquidity risks promise to present financial firms with steep challenges in the coming months.

By Christopher Whalen | October 10, 2018

No Pain, Just Gain for Supply Chain

Working Capital

No Pain, Just Gain for Supply Chain

Supply chain financing lets companies stretch payment terms without hurting their suppliers’ cash flow.

By Randy Myers | February 20, 2018

Auto Sales Slowdown Driving Risk for Lenders

Auto Sales Slowdown Driving Risk for Lenders

Moody's says credit risk is rising at a time when the average dollar amount of negative equity at trade-in is at record levels.

By Matthew Heller | March 28, 2017

U.S. Bank Profits Climb 11.9% to $40.8B

U.S. Bank Profits Climb 11.9% to $40.8B

"There are signs of growing credit risk, particularly among loans related to energy and agriculture,” said the FDIC's chairman.

By Matthew Heller | February 24, 2016

LBOs Face Mounting Credit Risks, S&P Says

LBOs Face Mounting Credit Risks, S&P Says

With debt burdens approaching the levels of the last LBO boom, the ratings agency warns there could be trouble for issuers.

By Katie Kuehner-Hebert | November 4, 2015

American Apparel Hints at Bankruptcy

Investment Banking

American Apparel Hints at Bankruptcy

American Apparel doesn't have enough cash on hand to make its next debt payment, $13.9 million due on Oct. 15.

By Matthew Heller | August 18, 2015

Women-Owned Businesses Are Greater Credit Risk

Women-Owned Businesses Are Greater Credit Risk

Women are more likely to have to put their personal credit at risk and they have less access to trade credit than male business owners, says Experian.

By Vincent Ryan | February 24, 2015

Leveraged Loan Underwriting Has “Serious Deficiencies”

Leveraged Loan Underwriting Has “Serious Deficiencies”

Leveraged loans show evidence of "risk management weaknesses," including dated valuations and poor credit analysis, regulators said in an annual review.

By Vincent Ryan | November 10, 2014

Regulators Want to Fix Bank’s Risk Models

Risk Management

Regulators Want to Fix Bank’s Risk Models

There is too much variability in the credit risk banks are assigning to different kinds of assets, says the the Basel Committee on Banking Supervision.

By Matthew Heller | October 9, 2014

Moody’s Spotlights Risky Leveraged Lending

Risk Management

Moody’s Spotlights Risky Leveraged Lending

Covenant protections on highly leveraged loans continue to weaken, meaning lenders will be vulnerable if a borrower experiences financial distress.

By | September 9, 2014

Two-Thirds of Leveraged Issues Lack Lender Protections

Two-Thirds of Leveraged Issues Lack Lender Protections

Most new leveraged loans are covenant-lite and carry ratings well-below investment grade from Standard & Poor's.

By Iris Dorbian | July 14, 2014

Offshore Corporate Profits Pose Hidden Risks

Offshore Corporate Profits Pose Hidden Risks

As they pile up in cash accounts, undistributed foreign profits are inflating U.S. multinationals' valuations and making companies appear less leveraged.

By Vincent Ryan | June 6, 2014

As Banks Loosen Underwriting, Credit Risk Rises

Growth Companies

As Banks Loosen Underwriting, Credit Risk Rises

Examiners find U.S. banks reducing collateral requirements and loosening covenants on business loans. Particularly the highly leveraged kind.

By Vincent Ryan | January 30, 2014

The Red-Hot Middle-Market

The Red-Hot Middle-Market

Neil Wessan, group head of CIT Capital Markets, explains how the financing giant is staying disciplined in its underwriting.

By Vincent Ryan | October 28, 2013

Risks Rising in the Corporate Bond Market

Risk Management

Risks Rising in the Corporate Bond Market

Default rates are still historically low. But investors and credit-rating agencies are watchful of how companies are deploying the proceeds from debt.

By Vincent Ryan | January 25, 2013