I'm curious about the various ways that people quantify credit risk. So far, I can really only think of two methods for measuring credit risk:
1) Credit Ratings / Credit Scores
2) Estimating the likelihood that someone will default on a loan over a specified time period
What else is there?
| +92 | Are you “less ambitious” for having long term goals outside of NYC | 22 | 2d | |
| +57 | How to sound more eloquent? | 26 | 1d | |
| +40 | WSO Ranking On Resume??? | 10 | 2d | |
| +35 | Interviews Are So Fake | 22 | 3m | |
| +33 | 2024 UK Election - Tories finished? | 20 | 10h | |
| +29 | Being Christian in investment banking | 14 | 4h | |
| +26 | Is my boss gaslighting me? | 3 | 5d | |
| +22 | Ideas for things to do with a free semester before starting ft? | 9 | 1d | |
| +20 | Sabotaging Peers to Get Ahead? | 34 | 3d | |
| +18 | Best NYC neighborhood for single 30M | 12 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
some common metrics: 1. operating cash flow (stable?) 2. coverage ratio 3. debt / equity 4. debt / assets
debt / ebitda free cash flow / debt any leverage metric
One thing I forgot to mention, was that I was talking about consumer debt (and not corporate debt). Looks like some of the answers above still apply to consumers, so thanks guys. Feel free to keep them coming if you think others are applicable to individual consumers.
Consequatur fugiat quidem eaque perferendis et libero ex. Veritatis nulla molestias rem veniam provident sint. Sequi expedita non voluptas. Et quia et repellat voluptates. Magnam aut est sit perferendis rerum quasi dolorem.
Accusantium est velit laborum dolorem. Et dignissimos tempore sunt illum maiores temporibus blanditiis. Quidem sunt et eligendi maxime dolorem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...