Forums  > Pricing & Modelling  > Modelling The Potential for Bank/Financial Firm's Insolvency  
     
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jeddie


Total Posts: 4
Joined: Feb 2012
 
Posted: 2012-07-11 00:38
I'm evaluating whether a certain financial firm would be at great risk of default if a certain level of their outstanding loans become delinquent. They are heavily leveraged with debt and appear to be having increasing amounts of debt coming to maturity in the next few years, but does anyone have a more sophisticated method to take a look at in deciding whether their potential risk of insolvency is exorbitantly high?

quantie


Total Posts: 861
Joined: Jun 2004
 
Posted: 2012-07-11 04:59
How about using some system dynamics for this? Set up some feedback loops in vensim you can make it as complicated (sophisticated)as you want.
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