Research

Giving Credit Its Due – v3

In our last enhancement of the Credit Quality Map, we offered a separate map representing credit quality trends across geographies and industries.  Which prompted the question: Could we not create a single, composite map?  Yes, we can!  And here its is.

Credit Quality Map

The Credit Quality Map represents business segments based on their current default rate and trailing twelve month (TTM) trend. This composite measure provides a succinct and actionable market perspective that complements individual business credit scoring.

The Credit Quality Map helps managers:

  • Identify new customer segments
  • Improve pricing
  • Tune credit policies and risk guidelines

A Research Note describing the Credit Quality Map is available here.