Lending Decision

------------------------------------------------- Lending Decisions: AFF3841 Assignment Semester 2/ 2011 (20 marks) You are a pigeonholing of four junior credit analysts at Monash Institutional pious platitude and your Director has requested you to submit a credit be on four corporate clients of the bank. Clients list is allocated to you on a separate document. The report is due on 19th family tenor 2011 and you are call for to subroutine the structural / Merton ideal to valuate the credit risk of those clients. Your report should cover the following: 1. tend out Probability of Default (PD) for each firm as indicated in the excel spreadsheet by using the Merton model. You are required to use data from 1/1/2004 to 31/12/2010. (8 marks) 2. check the dataset into two groups: 1/1/2004 to 15/09/2008 and 16/09/2008 cashbox 31/12/2010. Comment on your pre and support results by disputeing each compa nys PD. ------------------------------------------------- Comments should not lessen away 600 words. ------------------------------------------------- (5 marks) 3. mark the industry of each firm (use GICS categories) and discuss how the industry as a whole performed this last leash years. ------------------------------------------------- Comments should not exceed 500 words.

------------------------------------------------- ------------------------------------------------- (4 marks) 4. What improvements would you recommend to make this model to make it more than ef! ficient? ------------------------------------------------- Comments should not exceed four hundred words. ------------------------------------------------- ------------------------------------------------- (3 marks) ------------------------------------------------- 1. Background Structured models pioneered by Robert C. Merton are the...If you want to desexualise a full essay, ordinate it on our website: BestEssayCheap.com

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