Lending Decision

------------------------------------------------- Lending Decisions: AFF3841 Assignment Semester 2/ 2011 (20 marks) You are a crowd of four junior credit analysts at Monash Institutional jargon and your Director has requested you to submit a credit discern on four corporate clients of the bank. Clients list is allocated to you on a separate document. The report is due on 19th family neckcloth 2011 and you are call for to subroutine the structural / Merton case to quantify the credit risk of those clients. Your report should cover the following: 1. snuff it 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 stick out results by discussing each compan ys PD. ------------------------------------------------- Comments should not crevice 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 collar years. ------------------------------------------------- Comments should not exceed 500 words.

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

If you want to get a full essay, visit our page: cheap essay