Suppose that a bank has a total of 10 million of exposures
Suppose that a bank has a total of $10 million of exposures of a certain type. The 1-year probability of default averages 1% and the recovery rate averages 40%.
The copula correlation parameter is 0.2.
Estimate the 99.5% 1-year credit VaR.
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suppose that a bank has a total of 10 million of exposures of a certain type the 1-year probability of default averages
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