Anna Wong
New York Fed is doing a series on student loans delinquency. Some of these findings are very salient: They estimated that the credit score hit for a superprime that is 90-day delinquent to be 171 pts drop (!!!) “The 2020 forbearance marked all delinquent (but not defaulted) loans as current, causing a jump of 74 points, from 501 to 575, in the median score between 2019:Q4 and 2020:Q4 for those borrowers who were previously delinquent but not defaulted.” 10 million people may see their credit score plunge. This sudden repricing of credit risk…so what seemed to be good credit risk is suddenly not? How widespread and in what other asset markets is this mispricing of credit risk? https://libertystreeteconomics.newyorkfed.org/2025/03/credit-score-impacts-from-past-due-student-loan-payments/
