Correspondent Blog

We talk to many community bankers who are seeking ways to expand their commercial and industrial (C&I) loan portfolios. Yet, despite the strategic importance of this category, growth has remained elusive. The A and B cross-secured structure (“AB structure”) has recently been utilized by community banks as a practical, risk-managed method for increasing C&I lending…

As the risk of a recession gets pushed out by the market, so does the risk of credit. This is not to say bank credit is without risk, as higher rates, inflation, and a slowing economy have taken their toll. Three essential credit metrics – probabilities of default (POD), POD rate of change, and POD…