Bottom-Up Default Analysis of Corporate Solvency Risk : An Application to Latin America /

This paper suggests a novel approach to assess corporate sector solvency risk. The approach uses a Bottom-Up Default Analysis that projects probabilities of default of individual firms conditional on macroeconomic conditions and financial risk factors. This allows a direct macro-financial link to as...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Chan-Lau, Jorge
مؤلفون آخرون: Lim, Cheng, Rodriguez-Delgado, Jose Daniel, Sutton, Bennett
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2017.
سلاسل:IMF Working Papers; Working Paper ; No. 2017/133
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper suggests a novel approach to assess corporate sector solvency risk. The approach uses a Bottom-Up Default Analysis that projects probabilities of default of individual firms conditional on macroeconomic conditions and financial risk factors. This allows a direct macro-financial link to assessing corporate performance and facilitates what-if scenarios. When extended with credit portfolio techniques, the approach can also assess the aggregate impact of changes in firm solvency risk on creditor banks' capital buffers under different macroeconomic scenarios. As an illustration, we apply this approach to the corporate sector of the five largest economies in Latin America.
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وصف مادي:1 online resource (33 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students