FINM 36702

Portfolio Credit Risk: Modeling and Estimation

Spring Quarter
Instructor: Jon Frye
Syllabus

The global credit crisis of 2008 taught that credit loss can destroy financial institutionsthat had previously seemedsecure. Students in Portfolio Credit Risklearn the models used to analyze this risk, to limit positions in credit-sensitive instruments, to allocate holding coststo alignwith risk, and to determine required minimum bank capital. Beyond these specific applications,themodeling of portfolio credit risk provides tools and insights that can be appliedwhen an available data set is sparse relative to the richness of possible outcomes.

This course takes place in the first five weeks of the quarter.