For similar reasons, the managers bought bonds with little regard for the company's credit risk.
Additionally, eBay pointed to Bill Me Later's credit risk analysis, which has outperformed the consumer credit industry average.
"The rapid expansion of trust assets in 2012 has possibly increased the industry's credit risk and liquidity risk, " National Trust said in its earnings report.
The Economist Intelligence Unit's Country Risk service assesses credit risk across 120 countries.
"We're performing a little worse than our expectation, but nothing untoward, " says Joseph Poi, Ford Motor Credit's residual risk manager.
The rating firm found in an Aug. 3, 2011, credit opinion that one of MF Global's "credit strengths" were efforts to "strengthen risk management, " according to the subcommittee's letter.
"The main issue to assess is whether the Algerian event represents a new ongoing threat and a general associated elevation in the risk environment or a one-off occurrence which may now result actually in tighter security in the region, " says Nick Robson, the head of Jardine Lloyd Thompson's credit, political and security risk business.
Type in a ticker symbol at riskgrades.com and you'll soon see grades for a firm's market, credit, governance and accounting risk.
Both parties have barely changed their positions from the summer of 2011, when a downgrade of the U.S. credit rating led to a massive risk-asset selloff.
David Cameron is likely to paint a rather different picture of Labour's stewardship of the economy, blaming them for presiding over the biggest post-war budget deficit and potentially putting at risk Britain's international credit rating.
Mr. HENDRICKS: Theoretically, if they come out with a better model that dissects you more as a consumer and gives them more precision in figuring out whether you're a good credit risk, that's what would be in it for them.
The loss of America's AAA credit rating shouts loudly that there is risk in lending to America - which at a time of great stress in financial markets could be very destabilising.
There's rate risk in this spread (short-term rates could shoot up) but no credit risk.
Investors need objective and dynamic measures of credit risk, especially in today's volatile and fast-paced market environment.
Britain was not identified as a credit risk by Standard and Poor's in its report earlier this month.
Such a move could make those customers a more-favorable credit risk according to the bank's own underwriting standards, or it could deter the customer from staying with the bank.
WSJ: Wells Fargo to Increase Interest Rates on Some Small-Business Credit Lines
On the other hand, credit risk may fit into an insurer's broad portfolio.
But, apparently, no Wall Street analyst ever looked into whether U.S. banks had exposure to European credit and were at risk.
Alternatives have existed for years, and many of the world's largest financial institutions have used various tools for measuring credit risk that could be applied to the broader market.
But there's a bigger risk: It could deepen and lengthen the credit crisis.
"The lease residual-value risk in general remains Ford Motor Credit's biggest asset-quality wild card, " says Glenn Reynolds of the credit analysis firm CreditSights.
The bank, the largest credit card issuer, since its 2006 acquisition of MBNA, says it's all part of its "periodic" review of customer credit risk.
By this March, however, the Carlyle, Blackstone and other equity partnerships started marking down their holdings, and Reijtenbagh's portfolio plummeted, essentially putting Reijtenbagh at risk of a Credit Suisse margin call.
To achieve "attractive" yields in typical yield-bearing instruments (i.e. fixed income) in today's environment, one must generally take on a level of credit risk that essentially shifts the risk profile of that investment more toward the equity spectrum.
The markets apparently regard me as a worse credit risk than the government of the world's eighth largest economy - largely because individuals have a sorrier history in general of repaying what they owe than the public sectors of first-rank developed economies.
When pressed, schools can name researchers among their faculty who were concerned about the financial services industry's cavalier attitude toward risk in the lead-up to the credit crunch, but very few can name anyone who countered the relentless optimism of the pre-downturn years.
For instance, in 2002 Moody's acquired KMV, the global leader in provision of objective and quantitative credit risk assessment tools.
Evaluating credit risk, after all, is part of a banker's trade: they should know better than insurers how likely a borrower is to default.
That opinion changed in a hurry when some noncreditworthy homeowners were unable to make their payments as a boom in the U.S. housing market stalled, leading to a global credit crisis in which any risk was considered a bad risk.
It is based on more than 22, 000 financial statements (including those of businesses and their owners) from over 6, 600 businesses distributed across industries and sales ranges in the U.S. The predictive model is aimed at helping banks quantify and standardize their credit risk assessments, helping companies perform risk exposure due diligence on partner companies, and helping private businesses evaluate their own creditworthiness.
FORBES: Private-company credit risk shows signs of improving
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