09:17 ET
New risk model sets benchmark for accuracy in predicting credit rating changes
A new AI-driven corporate credit risk forecasting model, developed by SAS, Man Group, Pension Insurance Corporation, and Stanford University, offers unprecedented accuracy in predicting credit rating changes. This model serves as an early-warning system, allowing investors to better manage risk and improve returns by identifying potential downgrades or upgrades before they are reflected in market prices. Utilizing over two decades of credit data, the model significantly outperforms traditional methods, enhancing proactive portfolio management and capital allocation, especially crucial in today's high-interest-rate environment.
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