DURATION MODELS FOR CREDIT RATING MIGRATION: EVIDENCE FROM THE FINANCIAL CRISIS.

We introduce a specific duration model to analyze the prediction of the credit rating migration. We consider hazard rate processes based on multi‐state autoregressive conditional duration models. To take account of the economic context, we model the conditional mean of the duration between two ratin...

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Publicado en:Economic Inquiry Vol. 56; no. 3; pp. 1870 - 1887
Autores principales: Ben Ayed, Myriam, Karaa, Adel, Prigent, Jean‐Luc
Formato: Artículo
Publicado: Wiley-Blackwell Jul2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/ecin.12561
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        atl: DURATION MODELS FOR CREDIT RATING MIGRATION: EVIDENCE FROM THE FINANCIAL CRISIS.
      aug:
        au:
          Ben Ayed, Myriam
          Karaa, Adel
          Prigent, Jean‐Luc
        affil:
          University Sorbonne Abu Dhabi, Economy, Abu Dhabi, United Arab Emirates
          University of Tunis, ISG Tunis, Quantitative Methods, Le Bardo, 2000, Tunisia
          THEMA and LabeX MME-DII, University of Cergy‐Pontoise, Cergy, 95011, France
      su:
        New Zealand. Financial Markets Authority
        Financial crises
        Economic impact of emigration & immigration
        Credit ratings
        Rating agencies (Finance)
      sug:
        subj:
          Financial crises
          Economic impact of emigration & immigration
          New Zealand. Financial Markets Authority
          Credit Bureaus
          Credit ratings
          Rating agencies (Finance)
      ab: We introduce a specific duration model to analyze the prediction of the credit rating migration. We consider hazard rate processes based on multi‐state autoregressive conditional duration models. To take account of the economic context, we model the conditional mean of the duration between two ratings by means of a latent process. To this purpose, a dynamic‐ordered probit model is developed to describe the directions taken by the ratings in the presence of multiple states. As an illustration, we study the migration of credit rating during periods before and after the financial crisis. (JEL C14, C41, G24)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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