A Deep Dive on Vintage and Roll-Rate Methods

Gracecooper99110 Oct, 2023Finance

The Financial Accounting Standards Board (FASB) proposed the Current Expected Credit Loss (CECL) to anticipate and reserve against losses in a timely manner. Within the CECL umbrella, the Vintage and the Roll-rate methods give us some of the best estimates when determining expected credit losses. Both these methods come with their own unique set of advantages.