Poisson distribution and Ratings trigger: Difference between pages

Revision as of 13:50, 15 July 2015

A clause in loan documentation to protect the lender against deterioration in the credit rating of the borrower. For example, a ratings trigger might stipulate that if the credit rating falls below a specified level, this event will trigger immediate repayment of the borrowing.
A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.

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-<i>Statistics</i>.
+#A clause in loan documentation to protect the lender against deterioration in the credit rating of the borrower. For example, a ratings trigger might stipulate that if the credit rating falls below a specified level, this event will trigger immediate repayment of the borrowing.
+#A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.
-A probability model used where discrete events occur in a continuum.
-For example, the number of phone calls received in a given time period.
+== See also ==
+* [[Acceleration]]
+* [[Credit rating]]
+* [[Pricing grid]]
+[[Category:Treasury_operations_infrastructure]]
-The Poisson distribution can be a useful model for processes where:
-#Continuous observation is needed, rather than a number of independent trials.
-#The random variable takes a positive whole number (integer) value, with no upper limit.
-#The expected number of occurrences is known or can be estimated, and
-#Primary interest is in the number of times an event occurs within a particular period.
-== See also ==
-* [[Discrete random variable]]
-* [[Binomial distribution]]
-* [[Frequency distribution]]
-* [[Probability]]