Forecasting credit losses with the reversal in credit spreads

C-Tier
Journal: Economics Letters
Year: 2019
Volume: 178
Issue: C
Pages: 95-97

Score contribution per author:

1.009 = (α=2.02 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

López-Salido et al. (2017) find that there is predictable reversal in credit spreads. Because in theory credit spreads reflect expected future credit losses, we explore if the predictable reversal in credit spreads helps forecast loan charge-offs, particularly for big banks. Empirically, we find robust supporting evidence.

Technical Details

RePEc Handle
repec:eee:ecolet:v:178:y:2019:i:c:p:95-97
Journal Field
General
Author Count
1
Added to Database
2026-01-25