We analyze the mathematical structure of models for large risk portfolios, especially for credit risk models. These risk portfolios are modelled using a multivariate mixture model for the dependence structure between the risks. The dependence structures are characterized by latent variables Θ, which play the role of the systematic risks. We show that, depending on the choice of the distribution...

Credit card is the well accepted manner of payment in financial field. With the increasing number of users across the globe, risks on usage of credit card has also been raised, where there is danger of stealing of credit card details and committing frauds. Incremental methods are desirable in recent machine learning applications such as financial problems like credit card threat assessment sinc...

This paper investigates directional relationships, regime variances, transition probabilities and expected regime durations for a system of economic and financial risk variables in the U.S. markets. The system is based on monthly data, and encompasses credit, and market risks and economic activity variables. The methodology is based on the Markov-Switching cointegrated VAR model and their impul...

Market research companies expect that low value products such as online music and videos will become an important source of revenues for merchants in the future (Leong 2003). These revenues will mostly add up from individual payments for such products rather than from subscriptions (Ulph Jennings 2003). Content spending reports of Online Publishers Association already show that subscriptions sl...

Savings are essential for families to respond risks against adverse financial shocks and reduce costs of uncertainties in the future. However, personal savings have been decreasing among US households. This study analyzes determinants liquidity constraints relatively understudied middle class. The finds evidence substantial constraints—Eighty percent households class constrained. Furthermore, r...

Poverty and food security risks are increasing in resource-reliant African countries such as Nigeria. Resultantly, policymakers have attempted to use agricultural policy reforms boost productivity increase income. However, macroeconomic instabilities complicate transformation. Consequently, farm households try diversify production mitigate shock-induced nutrition losses. credit constraints disr...

The insurance industry is instrumental in economic growth through enabling protection, capital creation and promoting commerce. However, there has been a decline the industry's profitability Kenya. Hence, study assessed effect of risks on financial performance companies Specifically, examined effects credit risk, liquidity solvency reinsurance risk underwriting GDP was used as moderating variab...

In a supplier-retailer-buyer supply chain, the supplier frequently offers the retailer a trade credit of  periods, and the retailer in turn provides a trade credit of  periods to her/his buyer to stimulate sales and reduce inventory. From the seller’s perspective, granting trade credit increases sales and revenue but also increases opportunity cost (i.e., the capital opportunity loss during cre...

Credit scoring is an important tool in financial institutions, which can be used in credit granting decision. Credit applications are marked by credit scoring models and those with high marks will be treated as “good”, while those with low marks will be regarded as “bad”. As data mining technique develops, automatic credit scoring systems are warmly welcomed for their high efficiency and object...

• Climate risks affect both the real economy and financial system. We employ an agent-based macro-financial model to assess green policies. Green capital requirements spur productivity without hampering stability. Carbon risk adjustment public guarantees mitigate emissions but increase instability. A policy mix comprising all three policies is a sufficient condition for virtuous cycle. Which ca...