Price of Risk : Recent Evidence From Large Financials /

Probability of default (PD) measures have been widely used in estimating potential losses of, and contagion among, large financial institutions. In a period of financial stress however, the existing methods to compute PDs and generate loss estimates that may vary significantly. This paper discusses...

Disgrifiad llawn

Manylion Llyfryddiaeth
Prif Awdur: Singh, Manmohan
Awduron Eraill: Youssef, Karim
Fformat: Cylchgrawn
Iaith:English
Cyhoeddwyd: Washington, D.C. : International Monetary Fund, 2010.
Cyfres:IMF Working Papers; Working Paper ; No. 2010/190
Mynediad Ar-lein:Full text available on IMF
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020 |z 9781455202249 
022 |a 1018-5941 
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100 1 |a Singh, Manmohan. 
245 1 0 |a Price of Risk :   |b Recent Evidence From Large Financials /  |c Manmohan Singh, Karim Youssef. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2010. 
300 |a 1 online resource (12 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Probability of default (PD) measures have been widely used in estimating potential losses of, and contagion among, large financial institutions. In a period of financial stress however, the existing methods to compute PDs and generate loss estimates that may vary significantly. This paper discusses three issues that should be taken into account in using PD-based methodologies for loss or contagion analyses: (i) the use of - risk-neutral probabilities - vs. -real-world probabilities; - (ii) the divergence between movements in credit and equity markets during periods of financial stress; and (iii) the assumption of stochastic vs. fixed recovery for financial institutions' assets. All three elements have nontrivial implications for providing an accurate estimate of default probabilities and associated losses as inputs for setting policies related to large banks in distress. 
538 |a Mode of access: Internet 
700 1 |a Youssef, Karim. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2010/190 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2010/190/001.2010.issue-190-en.xml  |z IMF e-Library