5.2 Introduction to Financial Theory
5.3 Methodology of Credit Drivers
5.4 Data Description and Analysis
5.5 Results and Summary
Financial institutions have taken steps to measure risk in an effort to satisfy regulatory requirements and avoid losses. Their efforts have primarily focused on the calculation of market risk for a particular portfolio. This approach, however, does not capture the interaction of the different types of risk that a firm faces, the marginal impact of a trade ...