In this paper we use an evolutionary approach in order to infer the values of the parameters (weights of criteria, preference, indifference and veto thresholds) for developing the multicriteria method MURAME. According to the logic of preference disaggregation, the problem consists in finding...

We examine the impact of credit default swaps (CDS) on lending relationships and credit market efficiency. CDS insulate lenders against losses from forcing borrowers into default and liquidation. This improves the credibility of foreclosure threats, which can have positive implications for...

There are few things more constant in life than the rise and fall of financial markets. When markets crash, however, we are forced to restore them while learning from our mistakes. In the wake of the recent subprime mortgage crisis, Congress has drastically but deservedly overhauled the...

We dissect the information content of sovereign credit rating reports issued by Moody's in 62 countries for the period 2003–2013. Using the Naïve Bayesian machine learning algorithm, we classify all sentences in each report into positive and negative tone, as well as six informational...

This paper investigates the importance of having a sovereign credit rating for a country's financial development. After controlling for endogeneity and selection bias, we compare different aspects of the financial sector and the capital markets of recently rated countries with otherwise similar,...

We examine if Standard & Poor's (S&P) credit rating action reports contain new default-related information beyond credit rating actions such as rating changes, Credit Watch and Outlook. We find that the net linguistic tone (negative minus positive tone) in the reports is significantly and...

This paper describes the model of credit growth in the sector of commercial banks in Poland making use of panel data from Senior Loan Officers Opinion Survey (SLOS). The main aim of the model is short-term forecasting of the loan growth at the disaggregated (for particular banks) and aggregated...

We find that firms reduce net debt issuance (NDI, hereafter) when industry peers with the same credit rating were downgraded in the previous year, as opposed to an average NDI increase among all firms. This finding is consistent with the considerations of competition and contagion associated...

Default of a sovereign entity was usually considered an extremely rare event. Similarly, countries were not commonly supposed to go bankrupt and, therefore, government bonds are usually considered a good proxy of risk-free rates, notwithstanding the more or less recent cases of default and debt...