Q2.8. Model Validation: What Regulators Actually Ask
A model can be statistically sound and still fail validation, because validation asks whether it survives independent challenge. This post covers the…
credit risk modelling
Q2.6. Low Default Portfolios: Rating Models With No Data
A low default portfolio is one where defaults are too rare to estimate PD by counting them — and in emerging-market banks…
Q2.5. Through-the-Cycle vs Point-in-Time PD Explained
Through-the-cycle and point-in-time PD are two legitimate answers to what looks like one question, and they can differ by a factor of…