Default risk refers to the possibility that a company may fail to meet its financial obligations, such as paying dividends or repaying debt. When a company that has issued common stock defaults, the ...

Default risk on purchase loans match default risk on refinances for the first time since 2021, per new Milliman research For the first time in three years, home purchase loans are considered just as ...

Learn about the Merton Model for evaluating corporate credit risk, developed by Robert Merton in 1974, and used by analysts ...

There's generally no such thing as a risk-free investment, and that's especially holds true when it comes to corporate bonds. Companies issue these debt instruments to help pay for things such as ...

The assessment of default risk is also critical in the valuation of corporate bonds and credit derivatives such as basket-default swaps. There is an important distinction between default risk under ...

Mortgage lenders impose a default premium on the loans they originate to compensate for the possibility that borrowers won’t make payments. The housing boom of the 2000s was characterized by ...

New York Community Bank is working hard to right its ship, but the 2019 rent law is relentless. The Long Island-based lender, saved from the brink of collapse in March, reported a 990 percent surge in ...

Carillion PLC, the UK’s largest construction firm, entered into compulsory liquidation on 15 Jan 2018, after banks and the government declined to provide further support, triggering the UK’s largest ...

It’s no secret that investors and asset managers alike have been assigning growing importance to environmental, social and governance dimensions during the selection of assets in portfolios. Now, when ...

The credit quality of an entity is essential information that reflects that entity’s financial health and its ability to meet debt obligations. Credit quality can be expressed as a credit score, but ...

A research group has proposed to hedge default risk in the utility-scale PV business by adopting credit default swaps. The new methodology was tested through a series of Montecarlo simulations and ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...