Credit analysis model of level II

[archived_user]

Hi,
could you kindly tell, if there is any math question ever came from credit analysis model of Fixed Income ( i meant the math question other than the only one math example given in the book)
what kinds of question may come from structural models and reduced formed models?
do we have to memorize the long formulas given in the chapters?
Thank you
sasha

 

[archived_user]

No math that I’ve ever encountered, it’s just been knowing the high level differences between structural and reduced form.

 

[archived_user]

Always look at the LOS for a particular reading that you’re concerned about. If the LOS says calculate, then you need to learn the formula.

 

[archived_user]

I would say go through the example carefully. It’s calculation intensive but not diffficult to understand. It is the core of the chap

 

[archived_user]

understanding what they are is important :structural models and reduced formed models.
Credit analysis models : key is can you calculate default free price given Probability of default, loss given default and so on.