KBRA Releases Bank Talk: The After-Show

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the release of this month’s
edition of Bank Talk: The After-Show, by Ethan Heisler, founder and
editor-in-chief of The Bank Treasury Newsletter and Senior Director for
KBRA.

In the discussion, Normalizing the Good Times, we hear from Ethan and
Van on why bank analysts view the prevailing low level of loan loss
experience on commercial bank balance sheets as unsustainable—meaning
that earnings are vulnerable when losses revert to their mean and that
analysts should be braced for that adjustment whenever it comes. Ethan
argues why that adjustment may take a while given the lengthening
horizon for the next recession. But Van reminds Ethan that the credit
perspective already incorporates cyclical credit losses in
credit-scoring financial institutions. Ethan then illustrates his
counterpoint using a back-of-the-envelope method consisting of long-term
moving averages to estimate the benefit of low loan loss rates on bank
returns.

To view the report, click here.

Related Publications: (available at www.kbra.com)


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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

Contacts

Analytical Contacts:
Ethan
Heisler, CFA, Senior Director
(516) 359-0975
eheisler@kbra.com

Van
Hesser, Senior Managing Director
(646) 731-2305
vhesser@kbra.com

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