English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

Credit quality changes need to be analysed from time to time. A good model for analysis needs to determine the Capital and reserves needed to support Credit Instruments portfolios as well as individual Credits. Conditions under which the Series method of finding Markov chains generators of Empirical Transition Matrices in Credit Ratings applications are identified in this article. Searching for valid Generators especially when a true generator does not exist and the properties of the series method is shown. Credit exposures Transition from one rating to another as well as Historical information are used to model estimation that pro- vide a description of Credit quality evolution probability. Time Homogeneous Markov Model specification is popularly used but it is only good in providing a description of portfolio risk changes in the short run hence restrictive in long run Credit processes. I propose a test which is simple and is of time homogeneity null hypothesis performed on all types of data reported often. The data used in the test is Sovereign debt, Municipal Bonds and Commercial paper. I find that transitions on municipal Bond ratings are described adequately for a period of up to five years. The Commercial paper assumes Markovian characteristics for a period of up to Six Months on a scale of 30 days transitions and the Sovereign debt transitions are described adequately by the Markov model using small data sample sizes.

iosr journal of mathematics

Asymptotic Properties of the Markov Chain Model method of finding Markov chains Generators of Empirical Transition Matrices in Credit Ratings Applications