Description:
This Probability of Default (PD) report covers a reference data set of more than 70,000 obligors. The scope includes both the North American Construction industry and the Real Estate investment industry.
The default rate in 2022 presents an uptick for both the residential and the non-residential segments. When looking into more details, for construction the default rate rose to 3% in 2022, the highest for the last decade. For Real Estate Investments, the non-residential segment is more impacted in 2022 than the residential.
The insights gained from these high-level analyses confirm the benefits of detailed and granular collection of data – critical for banks using data-driven credit risk modelling to understand and quantify PD.
