Quantifying Credit Risk I: Default Prediction

Abstract

Until the 1990s, corporate credit analysis was viewed as an art rather than a science because analysts lacked a way to adequately quantify absolute levels of default risk. In the past decade, howev... Until the 1990s, corporate credit analysis was viewed as an art rather than a science because of analysts' inability to adequately quantify absolute levels of default risk. More than 30 years ago, ...