For Banking Investors, Credit Is Due

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In 2020, a new accounting standard will shake up how banking investors consider credit risk. TelisDemos explains. WSJWhatsNow

Credit risk was mostly a nonfactor for banking investors in 2019. It was all about interest rates. The new year might be a different story.

This isn’t to say that the long-awaited “normalization” of default rates on loans to consumers and businesses will suddenly arrive, at least not without an accompanying recession.

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