The credit scoring blind spot – Macroeconomics

Posted Posted in Portfolio Analytics

In February 2016, about six months after rating a securitization, Moody’s found “faster buildup of delinquencies and charge-offs than expected” in the pool of Prosper loans backing the ABS. Experts had noticed deterioration months earlier…pundits discerned a signal…insights followed—macro trend…credit cycle…borrower stress. But then in July, Moody’s decided there was “absence of substantial deterioration”.  So, what […]

Details Matter

Posted Posted in Portfolio Analytics

Since our last post on the topic, not much has changed in the debate over small business lending:  no one is sure whether it’s lack of supply or lack of demand.  The topic is important and we’ll talk more about the continued lack of consensus and how WAIN Street could be helpful to the debate […]

Why Granularity Matters

Posted 1 CommentPosted in Portfolio Analytics

Granularity.  Specificity.  High-resolution.  Drill down.  Different words, all meaning the same thing: give me more detail; show me the texture; tell me the story within. That is what the WAIN Street Business Credit Health Index (BCH Index) does for managers of mid-market and small business credit portfolios.  It gives them an aggregate view of national credit health […]

You Said It, Mr. Pandit

Posted 1 CommentPosted in Portfolio Analytics

As a start-up in the financial services industry looking to make waves with what we see as a game changing innovation, WAIN Street is perpetually trying to explain to anyone who’ll listen the value proposition of our Business Credit Health Index (BCH Index) and its application to understanding business credit portfolios.   And nothing could […]

BCH Index: A Helping Hand to SBA

Posted Posted in Portfolio Analytics

By providing partial guarantees of billions of dollars in loans to mid-market and small businesses, the SBA is navigating treacherous waters. While fulfilling their mission to support small business growth, there’s always a danger that the SBA safety net allows lenders to excessively gamble on riskier companies exposing themselves to unsafe losses. Recent “Liar Loans” that […]

Credit Unions want to lend more to SMB’s

Posted Posted in Portfolio Analytics

From Credit Union Times: Congress will Again Take Up Business Lending, Consumer Bureau and Deficits Credit Unions are lobbying to loosen regulations that cap the amount of SMB lending they are allowed to carry. The fact that some banks are claiming to be turning down worthy businesses because of regulation is a little disturbing, especially given […]