Results for tag: "Probability Of Default"

Probability of Default (PD) is a measure used in banking to assess the risk of a borrower defaulting on a loan. It is calculated by analyzing the borrower's credit history, financial statements, and other relevant information. The PD is used to determine the amount of capital a bank must set aside to cover potential losses from a loan. Banks use the PD to assess the risk of a loan and to set the interest rate charged to the borrower. The PD market is a growing sector of the banking industry, with many companies offering services to help banks assess the risk of a loan. These services include credit scoring, risk modeling, and data analytics. Companies in the PD market include Experian, Equifax, TransUnion, FICO, and Moody's. Show Less Read more