The credit quality of an entity is essential information that reflects that entity’s financial health and its ability to meet debt obligations. Credit quality can be expressed as a credit score, but ...

According to Basel II, the probability of default (PD) should be a longterm average of one-year default rates. In this paper, long term is interpreted as one business cycle. When the PD is compared ...

Bonds' interest rates combine risk-free rate, inflation, liquidity, maturity, and default risk premiums. High-risk companies offer higher interest rates to compensate for possible default risks.

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.