Merton Model: Assessing Corporate Credit Risk with Precision

Learn about the Merton Model for evaluating corporate credit risk, developed by Robert Merton in 1974, and used by analysts ...
Investopedia

Black-Scholes Model: What It Is, How It Works, and the Options Formula

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Finextra

Navigating Model Risk Management Regulation On A Global Scale

Regulators around the world differ in their approach to model risk management (MRM) regulation – including their definitions of what a model is. While some are more prescriptive, others such as the UK ...
Morningstar

How to Flag Investment Style Drift With the Risk Model

Over time, investment portfolios can drift away from their original allocation. This can happen for a range of reasons. A new fund manager could deviate from a fund’s original process. Fund managers ...
Health Affairs

Inferred Risk: Reforming Medicare Risk Scores To Create A Fairer System

We propose that Medicare should pilot a data-driven, inference-based approach to establishing patient risk scores – and, therefore, budgets – for MA plans and value-based Accountable Care ...