Perspectives on Credit Risk, Portfolio Management, and Capital Through the Covid-19 Crisis

Any severe crisis will stress our models and risk management systems, but the COVID- 19 recession is unique in its asymmetry. Stresses and malfunctions occur in some data elements, models, products, and systems, but not others. Some older methods may be more robust than the latest approaches, except when they make assumptions that have now failed. Diagramming all the potential impacts begins to look like a joke flowchart.