Delinquencies Fall, Commercial Credit Migration Stalls Heading into COVID Winter Months

Generous government stimulus and unprecedented amounts of forbearance offered to borrowers through loan payment deferrals appear to have insulated banks from a worst-case scenario. Short-term delinquencies, after spiking as high as 1.3% in the initial throes of the recession, finished the year at just 0.3% as most borrowers coming off deferral programs have resumed their contractual repayment terms.