Article on Credit Risk Management

Post GFC (Global Financial Crisis), treasurers have grappled with credit risk issues that were starkly illuminated by Lehman’s meltdown. We were vividly reminded that agency ratings are not reliable. We tried using CDSs (Credit Default Swaps) but quickly found that trading induced volatility renders them unsuitable for us. Few of us have the resources to do our own analysis of bank balance sheets. This article summarises corporate counterparty credit risk management and suggests that implied ratings like Thomson Reuters SmartRatios Credit Risk Model (SmartRatios Model) can solve this ratings conundrum. Read more here acaCptyRisk130503reval