How To Prevent Another Financial Crisis On Wall Street
نویسندگان
چکیده
Riskiness of a particular loan can be estimated based on several of its economic indicators. Although the actual relationship is very complicated, it is possible to construct a simplified model which can roughly classify a loan into one of the three categories high risk loan, medium risk loan and low risk loan based on certain criteria. This paper seeks to build such a model based on publicly available information as well as various machine-learning techniques.
منابع مشابه
How to prevent another financial crisis on Wall Street: Predicting the riskiness of real estate loans
The goal of our project was to predict the average spread of a loan given its other features and analyze which features have greater effects on its riskiness. In addition, given aggregate data on the number of defaults by property type, we examined whether those property types with higher default rates also had higher average spreads. The hope is that we will be able to predict the riskiness an...
متن کاملDe-Leveraging and the Financial Accelerator: How Wall Street Can Shock Main Street
*The views expressed here are those of the author and do not necessarily represent the views of the Federal Reserve Bank of Philadelphia or the Federal Reserve System. he severity of the recent economic downturn raises questions about the role of financial markets in modern market economies. Why did rising defaults in a relatively small portion of the U.S. housing market cause a financial crisi...
متن کاملBeing on the Field When the Game Is Still Under Way. The Financial Press and Stock Markets in Times of Crisis
This paper looks at the relationship between negative news and stock markets in times of global crisis, such as the 2008/2009 period. We analysed one year of front page banner headlines of three financial newspapers, the Wall Street Journal, Financial Times, and Il Sole24ore to examine the influence of bad news both on stock market volatility and dynamic correlation. Our results show that the p...
متن کاملThe Myth of the Rational Market
In view of the collapse of Wall Street giants that brought the world economy to its knees, it does not seem strange to find so many books devoted to the current financial crisis. Justin Fox’s The myth of the rational market is one of these books. But, even though the book touches on Wall Street, it is not about mishandlings on Wall Street, but about faults of University of Chicago, the bastion ...
متن کاملFour theorems and a financial crisis
In this paper we give an academic assessment of the financial crisis (crises) from our point of view and discuss where quantitative risk management went wrong. We formulate four mathematical theorems/research areas which have relevance for financial crises in general where the underlying theme is model uncertainty. Related to these theorems, key issues that will be discussed are: financial alch...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2013