Methods and Practices: The Economic Value of Loan Assets

Table of Contents
Financial Insights Opinion


In This Report
Situation Overview
Method Specifics
Income Statement Approach
Analytical Assumptions to Consider
What Is Net Present Value?
Estimating Credit Losses Using Credit Scores
Conclusion
Future Outlook
Essential Guidance
Actions to Consider
Learn More
Related Research
Synopsis
Table: Example of Monthly Vintage Cash Flow ($)
Table: Example of First and Last Three Months of Cash Flows ($)
Table: Example of Net Present Value of Single Loan ($)
Table: Example of Tolerance for Maximum Charge-Off ($)
Table: Estimated Loss Vectors Using Credit Scores
Figure: Net Present Value Calculation
Figure: Projected and Discounted Monthly Cash Flows