A major advancement in risk management among large financial institutions has been the development of internal risk models. The models encompass institutions’ procedures and techniques for assessing ...

Before ChatGPT could write essays, explain tax code, or summarize earnings reports, it had to master something far simpler but no less profound: probability. While headlines may credit “artificial ...

Structural models of default are widely used to analyze corporate bond spreads, but have generally been unable to explain why risk premiums are as high as they are. This credit spread puzzle can be ...

This study develops a governance-aligned framework for probability of default modeling under class imbalance, combining domain-informed feature engineering, resampling, ensemble learning and ...

This article was written by Jerome Barkate, Nakul Nair, Zane Van Dusen, and Scott Coulter. We are witnessing a remarkable period in the credit markets. Following years of accommodative monetary ...