Market-Based Estimation of Default Probabilities and its Application to Financial Market Surveillance /

This paper reviews a number of different techniques for estimating default probabilities from the prices of publicly traded securities. These techniques are useful for assessing credit exposure, systemic risk, and stress testing financial systems. The choice of techniques was guided by their ease of...

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Detalles Bibliográficos
Autor principal: Chan-Lau, Jorge
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2006.
Colección:IMF Working Papers; Working Paper ; No. 2006/104
Acceso en línea:Full text available on IMF
Descripción
Sumario:This paper reviews a number of different techniques for estimating default probabilities from the prices of publicly traded securities. These techniques are useful for assessing credit exposure, systemic risk, and stress testing financial systems. The choice of techniques was guided by their ease of implementation and their applicability to a wide cross-section of countries and markets. Simple one-period cases are studied to sharpen the reader's intuition, and the usefulness of each technique for enhancing financial surveillance is illustrated with real applications.
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Descripción Física:1 online resource (19 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students