Risk of Defaulting
Journal Title: Revista Romana de Statistica - Year 2013, Vol 61, Issue 3
Abstract
There are numerous studies which have examined risk of default on the capital market. Over time have appeared many models for the determination of the risk of default. All these models have shown that the risk of default may be dependent on some observable variables, as well as financial indicators or the economy. Probability of default is subject to changes fast, and this is why it is so important that the players on the capital market to follow the trend in companies in every moment. A way in which investors can learn counterparty quality systems is to use external rating. They are provided by specialized companies, companies’ ratings, which are independent companies and that determine the ability to carry out the obligations of companies and be given a rating, usually internationally acknowledged. Another way to determine the quality of a counterparty is using the internal rating-based analysis of the scoring system used most frequently by banks.
Authors and Affiliations
Vergil VOINEAGU, Cătălin DEATCU, Dănuţ CULEŢU, Alexandru URSACHE
Keywords
Related Articles
- EP ID EP141438
- DOI -
- Views 131
- Downloads 0
Theoretical Aspects Concerning the Inflation Analysis
Definition of inflation was the victim of a "war" theory of money growth and general price increase. What was once described as a monetary issue is now presented as a price effect. This change of position sense supporter...
CHANGES IN ROMANIAN HIGHER EDUCATION AFTER 1990
Education is one of the key factors in the economic development of any country. The higher education system in Romania has undergone major transformations in the last 23 years. This paper introduces the evolution of some...
Analysis of the correlation between the Gross Domestic Product and some factorial variables
In this article we left that GDP increases due to the influence of factors. The structural analysis of GDP, the most important indicator of national results, we perform studies on factors based on source or final use of...
The Globalization in the Crisis Context
The succession of the crises back in the years '90, in Mexico, followed by Thailand, Indonesia , Korea, continuing with Russia, Turkey, Brazil and the last but not the least, Argentina, let many analysts to allege that t...
General Aspects Regarding the Methodology for Prediction Risk
In order to measure the total risk to which an investor or a financial institution is exposed when they invest in a financial asset, there needs to be a tool to capture this risk. The most widely used tool in measuring t...