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 ...

The author puts forward s a governance-aligned framework for probability of default modeling under class imbalance, combining domain-informed feature ...

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 ...