Credit Risk Introduction

[@MJtheFellowActuary]

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[@katlegozabala123]

your ability to make the content relatable is invaluable man, thank you

[@jeremiahdeborah1395]

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[@YeahBuddy]

This is a very well done video. I would say late payments are a variable that would be used to calculate the probability of default. This is why late payments often lower a person’s credit score. Looking forward to watching more!

[@TheCutestEvil]

great explanation !! thank you! As a beginner in this field, it has really helped me understand basics.

[@jeremiahdeborah1395]

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[@Adam-vp4oe]

Hi MJ, I wanted to make a complimentary comment to your conundrum mentioned at 5:30 forward. Categorizing for probability of default (or PD) is illegal in most countries in most fashions. In the US it can be considered redlining or against UDAAP. Most of PD is based on many factors but mostly the Debt Service Coverage Ratio which is different for corporates than individuals but can be googled for formula. This basically looks at excess cash from income after sole expenses to service the cumulative debt payments. The loss if defaulted is usually based on the loan to value of collateral taken. The quality of these ratios are then typically ranked into grades and each grade can reflect a percentage of loss likelihood or loss percentage after collateral sold. I hope that give some insight on the micro scale of credit modeling. I really enjoy your video going over the macro view. It's very insightful.

[@MJtheFellowActuary]

+Adam Cogan thank you so much for this comment. These videos are essentially me studying out loud and trying to wrestle with the concepts and idea. I really appreciate your response

[@Adam-vp4oe]

It is very enlightening is something I hope to work my way up into, I'd like to be a "quantitative/qualitative credit risk modeler". Are you studying mathematics or does your college have an actuary program?

[@MJtheFellowActuary]

I studied at Wits and fortunately we had a dedicated Actuarial Program :-)

[@rowansiddig9043]

Hi MG and Adam ..
I have to develop a credit risk assessment system. I do not know anything about this topic. I need you to guide me with all books, videos, scientific papers and articles.
Thanks for this video

[@nomuntu]

great ability to explain!!!!

[@1996JRC]

Cheers for the videos - very well explained. Would you consider doing one on calculating the matching adjustment for a given portfolio of assets?

[@martalena6053]

You are awesome! Please continue this great job!!!

[@MJtheFellowActuary]

Thank you so much!! :-)

[@nyaka4272]

Thanks so much...great explanation

[@tlhogid663]

Awesome video

[@jcn268]

interesting , never knew there was this much philosophy in actuarial science

[@rasrahmani3087]

Great explanations. Thanks mate!

[@vaquezartup365]

Our lecturer wrote
Risk index ={[E(ROA)+CAP] \ ROA }
Wat is it about
Do you have a tutorial on it

[@lebogangmoichela7879]

You, Sir, are brilliant.

[@Griffatron3000]

Very well explained, thanks

[@chitalusooka4978]

thank you

[@Obi1Kenobiii]

Hi MJ, can I ask you what program are you using to draw this presentation?

[@reachDeepNeuron]

my question is when we have credit score of each customer , is that not sufficient to sanction his loan .. Why do build a predictive model ?

[@jeremiahdeborah1395]

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[@stefanosa5050]

Can probability of default be zero?

[@jeremiahdeborah1395]

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[@MJtheFellowActuary]

Theoretically yes, practically no. The future is uncertain and so there is always a chance (no matter how small) that the loan isn’t repaid no matter how creditworthy the borrower is.

[@Kaplanel]

hello, thank you. Could you please suggest me a book related to credit risk assessment? thanks

[@MJtheFellowActuary]

Enterprise Risk Management by James Lam

[@Kaplanel]

MJ the Student Actuary hello, thank you but I am looking for something that focus on credit risk management. could you suggest me smt ? thanks..

[@DeepakSharma-ho4eq]

@@Kaplanel advanced credit risk analysis and management Ciby Joseph
Publisher Wiley Finance

[@rishabhs4956]

Awesome!! 💚💚💚

[@apextamang2009]

the paradox is u can tell the bank are shit . but they are the people who are expert in credit lending .so they are taking also a fee. and we need them

[@llamabridge2962]

This was awesome

[@TheMcallist1]

Hi MJ, great video. Thanks. I was just wondering what app you use to make the videos? Thanks

[@MJtheFellowActuary]

I'm just using SNote on the Samsung Tablet along with a Screen Recorder :-)

[@TheMcallist1]

Thanks MJ

[@yuxichen8661]

Is systemic and systematic risk the same thing?

[@MJtheFellowActuary]

No! Despite their similar spelling, it’s easy to confuse them

[@yuxichen8661]

@@MJtheFellowActuary oh thanks for your answer, may I ask what’s the difference between them exactly?

[@phantomdevil8096]

What's your great nation bro

[@TheWayofWyrd]

Rubbish

[@sathishbandolero]

Thank you