Which of the following credit risk models focuses on default alone and ignores credit migration when assessing credit risk?

Which of the following credit risk models focuses on default alone and ignores credit migration when assessing credit risk?
A . CreditPortfolio View
B . The contingent claims approach
C . The CreditMetrics approach
D . The actuarial approach

View Answer

Answer: D

Explanation:

The correct answer is Choice ‘d’. The following is a brief description of the major approaches available to model credit risk, and the analysis that underlies them: