Discussion on Using International Default Statistics for ECL Assessment of “Other Receivables” in Hong Kong / PRC
The Key Points to Note if Your PDs are Derived from International Credit Rating Agencies Annual Default Study
ISO 9001 Certified in Valuation Advisory
ISO 9001 Certified in Valuation Advisory
The Key Points to Note if Your PDs are Derived from International Credit Rating Agencies Annual Default Study
We invested a significant amount of time in identifying suitable market benchmarks to determine loss rates for these counterparties. Given the diverse nature of these counterparties, including differences in industry, nature, and size, our team faced challenges in developing a systematic approach to derive objective results.
One common error in expected credit loss (ECL) evaluation is the failure to adequately consider forward-looking information. ECL estimation requires assessing not only historical data but also future expectations and economic conditions. Failing to incorporate forward-looking information can lead to an underestimation or overestimation of credit losses.
Valtech Valuation Completes ECL Advisory
Valtech Valuation Completes an Assessment on Expected Credit Losses for an Iron Ore Exploration Company