When analyzing the performance of your loans, assumptions must be made about factors that could affect their future cash flows.
No matter how well-researched, these assumptions ultimately differ from the end result.
Using of scenario analysis, it is possible for your institution to assess the sensitivity to deviations in prepayment rates, charge-off rates and other factors in your projected performance.
Using of scenario analysis, it is possible for your institution to assess the sensitivity to deviations in prepayment rates, charge-off rates and other factors in your projected performance.
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