3. Risk neutral PDs should not be acceptable as estimates of observed (historical) PDs for the …

Risk neutral PDs should not be acceptable as estimates of observed (historical) PDs for the modelling of the rating migration or default. If PDs implied from market prices are used, the institution should do the relevant corrections to obtain the real measure probability from risk neutral probabilities, and it should compare the outcomes of its methodology against the historical record.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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