Unraveling the Tapestry of Probability of Default Modeling: A Comprehensive Exploration of Italian Banking Dynamics
Embarking on a comprehensive exploration of Probability of Default (PD) modeling, we embark on a journey that traces its origins from the pioneering works of Beaver (1966), Altman (1968), and Ohlson (1980). The landscape has evolved, incorporating machine learning (ML) techniques, as showcased in modern studies like Moscatelli et al. (2020). Yet, a regulatory conundrum […]