Modeling Institutional Credit Risk with Financial News

Credit risk management, the practice of mitigating losses by understanding the adequacy of a borrower's capital and loan loss reserves, has long been imperative to any financial institution's long-term sustainability and growth. MassMutual is no exception. The company is keen on effectively monitoring downgrade risk, or the risk associated with the event when credit rating of a company deteriorates. Current work in downgrade risk modeling depends on multiple variations of quantitative measures p...