But You’ll Never Know the One
We also have a newer post, Price Implied Default Rates, that provides an example more like a risky bond, and this one: Multi-period Bond Price Implied Default Rates and CDS. And we’ll have more related posts soon.
We’ve noticed that our few posts on risk neutral probabilities and implied default probabilities have been among our most […]
This a small point, but the pedant in us isn’t above it.
Yesterday’s (November 12) Wall Street Journal contained an opinion column, Is Now the Time to Buy Stocks? by John H. Cochrane, a finance prof at the University of Chicago. Rather than comment on his data-mining exercise, we’d rather repeat his qualification that “History is not a guarantee—this time […]
Analogously: The Gangs That Can’t Shoot Straight
Last week in The Understatement of the Year! we wrote, “The problem, dear reader, is that few senior managers (and almost no board members) understand the valuation and risk models used for securitizations…”
Today, there is an article in The Wall Street Journal, Citi Directors Mull Replacing Chairman, that provides additional evidence to support our claim.
To be frank, unless it […]
