A New Risk Indicator and Stress Testing Tool : A Multifactor Nth-to-Default CDS Basket /

This paper generalizes a market-based indicator for financial sector surveillance using a multifactor latent structure in the determination of the default probabilities of an nth-todefault credit default swap (CDS) basket of large complex financial institutions (LCFIs). To estimate the multifactor l...

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Bibliographic Details
Main Author: Avesani, Renzo
Other Authors: Garcia Pascual, Antonio, Li, Jing
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2006.
Series:IMF Working Papers; Working Paper ; No. 2006/105
Online Access:Full text available on IMF