Purpose – The purpose of this paper is to investigate the relationship between loan default and loss given default (LGD … demonstrates that historical systematic risks due to the correlation between probability of default (PD) and LGD through the …

time causes a threat to the MFIs as some of them become default. We observe that among these Ultra-poor households who have …

of 3 per cent per month or 34 per cent per annum. The low income and high interest rate have led to high default rate … among SMEs borrowers. The study showed that among SME entrepreneurs who repay credit on monthly basis there is a default … rate of 2. 8 per cent where as those who repay annually have default rate of 6.5 per cent. It would be necessary for Micro …

first proposition because, if it were, that would mean that a particular good is buying goods. (3) Default on debt is …

In the presence of uninsurable idiosyncratic risk, the optimal credit contract allows for the possibility of default … save. When default is sufficiently high, credit markets may collapse. A regulatory requirement on the level of savings can …

Purpose – This paper is a first attempt to empirically calibrate the default and asset correlation for large companies … authors estimate default probabilities and default correlations of long-term bonds of 542 Indian corporates using rating … default correlations and default thresholds are derived using the asymptotic single risk factor approach. Findings – The …