Show regression analysis to estimate the default probability, Financial Management

Assignment Help:

1. The standard approach here is to calculate some conventional ratios.

These ratios can afterwards be used along with regression analysis to estimate the default probability.

2. To acquire the migration matrix for a particular credit rating once could look at the past ratings data on all corporate and calculate the statistical estimates for the transition probabilities from one rating to another in a given time period.

3. There are several credit ratings and each credit comes with a migration matrix. Using past data one can as well calculate the joint probabilities that two or more credits migrate to a different rating.


Related Discussions:- Show regression analysis to estimate the default probability

Explain about invoice discounting, Q. Explain about Invoice discounting? ...

Q. Explain about Invoice discounting? Invoice discounting is a technique which is able to be used to raise finance against receivables. Invoice discounting works as follows:

What are the main elements of capital budgeting decisions, What are the mai...

What are the main elements of capital budgeting decisions There are three elements of capital budgeting decisions (i) long-term assets and their composition (ii) business

How do we calculate the payback period, How do we calculate the payback per...

How do we calculate the payback period for a proposed capital budgeting project? What are the major criticisms of the payback method? We compute the payback period for a proposed

Explain financial ratio, What is a financial ratio? A financial ratio i...

What is a financial ratio? A financial ratio is a number that denotes the value of one financial variable that is relative to another.  Put much more simply, a financial ratio

Define the explicit cost of capital, Define the Explicit cost of capital ...

Define the Explicit cost of capital Explicit cost of retained earnings that involve no future flows to or from firm is minus 100 per cent. This must not tempt one to infer that

#titleCOST VOUME PROFIT.., Ask question #Minimum ed# what is cost volume pr...

Ask question #Minimum ed# what is cost volume profits and what are the advantages and disadvantages?

Margining system, Margining System: Indian capital markets have finally...

Margining System: Indian capital markets have finally acquired an international flavor with the market-wide rolling settlement coming into place on both the premier exchanges (

Establish budgets and allocate funds, 1. Allocate resources to different de...

1. Allocate resources to different departments by taking information from previous financial data. 2. What would be the estimated cost of new allotted resources to be included i

Accounting, Accounting : Many people believe financial management only r...

Accounting : Many people believe financial management only relates to bookkeeping and the establishment of accounting reports which reflect those transactions in the books.  Whi

Strategies of hedge funds, Strategies of Hedge Funds: Hedge funds use ...

Strategies of Hedge Funds: Hedge funds use a range of different strategies, and each fund manager can argue that he or she is unique and could not be compared to other manager

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd