Structural Vs Reduced Form Models of Credit Risk (CFA Level 2, FRM Part 2, Book 2, Credit Risk)

[@finRGB]

FRM Learning Objective: Distinguish between the structural approaches and the reduced-form approaches to predicting default.

[@olamoyegunoreofe]

Thanks for the explanation

[@mahersaeed5407]

Great explanation! Thanks a lot…

[@michaelnguyen7081]

How about the empirical model of credit risk (Altman Z score), do you have any information about it? Thank you for your videos

[@finRGB]

Sure, will do a separate video on the Altman's model.