An assumption regarding the absence of ratings momentum is referred to as:
Which of the following statements are true:I,A high score according to Altman's Z-Score methodology indicates a lower default riskII,A high score according to the Probit or Logit models indicates a higher default riskIII,A high score according to Altman's Z-Score methodology indicates a higher default riskIV. A high score according to the Probit or Logit models indicates a lower default risk
Which loss event type is the failure to timely deliver collateral classified as under the Basel II framework?
A corporate bond maturing in 1 year yields 8.5% per year, while a similar treasury bond yields 4%. What is the probability of default for the corporate bond assuming the recovery rate is zero?
Which of the following statements are true in relation to the current state of the financial network?I,Interconnectivity between countries has reduced while that between institutions in the same country has increased significantlyII,The degrees of separation between institutions has gone upIII,The average path length connecting any two given institutions has shrunkIV. Knife-edge dynamics imply that systemic risk arises from the financial system flipping from risk sharing to risk spreading