Forecasting is hard. CECL forecasts are harder. Why? Historical data must be tied to economic data to understand how macro economics have impacted performance.
Forecasting is hard. CECL forecasts are harder. Why? Historical data must be tied to economic data to understand how macro economics have impacted performance.
Banks adopting CECL saw a wide range of increases in their reserves. But the bigger impacts are coming from the recession.
CECL loss estimates require a forecast of future economic conditions to adjust historical loss rates. What factors should you take into account?