Sentence examples for default risk based from inspiring English sources

The key component of credit rating is to quantify the default risk based on the borrower's ability and willingness to repay through analyzing their credit information (Wang et al. 2015b).

If you were trying to predict a country's default risk today, based on the market's perception of its default risk two years ago as well as its S.&P.

"Now they are risk based".

The bank can thus reasonably manage its credit risks based on the historic default rates for the lending categories it specializes in.

Besides market risks, Goldman also assesses credit risks, based on whether a counterparty might default on a loan or fail to honour a derivative contract, and liquidity risk.

We'll take your mortgages, securitize them, slice them into categories based on default risk, use computer models to match default risk with yield and sell them to willing buyers.

In stepped the investment bank industry with another solution: We'll take your mortgages, securitize them, slice them into categories based on default risk, use computer models to match default risk with yield and sell them to buyers around the world.

Finally, our results reveal that the supplier prefers to use the insurance mechanism only when the retailer's credit state is relatively poor and employs either the screening or checking mechanism based on the default risk gap effect otherwise.

The financial turmoil we've been seeing is based on a reawakening to default risk across the board.

Ms. Tett describes how banks invented increasingly complex derivatives, "all based upon the fundamental premise that the default risk of bundles of mortgages had been virtually erased by the process of bundling and then slicing them" into so-called "tranches," which were supposed to give investors a choice of different levels of risk and return.

In the case of Lending Club, borrowers are screened based on credit rating and other criteria found effective over the years in identifying default risk.