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This is the Syllabus of the course.
Depending on your requests and comments, some amendments can be done during the course.

Week 1
Credit Risk and the Regulatory Framework

  • Definition of Credit Risk
  • Credit Risk in Basel II and III
  • The main quantities involved: PD, LGD, EAD, etc.
  • A quick view of IFRS9
  • Intro to LGD estimation

Week 2
Estimating the PD 1

  • Structural Models and Mixture Models
  • Merton's Model
  • Moody's KMV®
  • CreditMetrics®
  • Pro et Contra
  • Copulas in a Nutshell

Week 3
Estimating the PD 2

  • Threshold Models
  • Mixture Models
  • CreditRisk+
  • Some Alternatives
  • Pro et Contra
  • Mini-course on Survival Analysis P1

First Partial Exam

Week 4
A relevant Miscellanea

  • Low Default Portfolios
  • The Basel IRB formula(s)
  • Mini-course on Survival Analysis P2

Week 5
Dependence

  • Correlation and other measures of dependence
  • Mini-course on Survival Analysis P3
  • Linear Models and PD estimation
  • Model Risk?

Week 6
Statistical Inference and Data analysis

  • Estimation and simulation
  • Analysis and problems with actual data
  • Survival Analysis and GLM in Practice
  • Extra topic of Week 6? --> IFRS9

Second Partial Exam

Final Project

---------    Course End: 15.01.2017    ---------