ATTENTION CUSTOMERS
Starting April 4, you will use the Abrigo site or a product-specific URL to access your Sageworks lending, credit risk, and portfolio risk product logins. Please update your bookmarks so you are ready!
Our product support service line and product support email address will continue to function as before. Visit the Contact Us page for contact info.

CECL Methodology Overview – Discounted Cash Flow

Introduction to Discounted Cash Flow analysis and application for estimating expected credit losses

Institutions are discovering Discounted Cash Flow modeling to be an effective method of measurement for a variety of reasons, namely when historical loan data is insufficient and/or application toward longer-term assets. This paper covers the basics of this measurement methodology, a high-level discussion on the inputs and assumptions used to perform the calculation, and the benefits and challenges of its deployment.

Whitepaper Highlights:

  • CECL overview
  • DCF inputs and assumptions
  • Benefits and challenges of deploying a DCF analysis

Download the Whitepaper