In Moody's view, the longer the liquidity crisis continues, the more rapidly the probability of defaults will continue to rise.
What does PD stand for?
PD stands for Probability of Default
This definition appears very frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of PD
We have 132 other meanings of PD in our Acronym Attic
- Prevent Defense
- Primary Dealer
- Primary Doctor
- Prime Dictate (edict of law issued by a prime minister)
- Princess Diaries (movie)
- Priority Designator
- Prisoner's Dilemma (game theory problem)
- Private Detective
- Probability of Damage
Samples in periodicals archive:
About $12 billion of rated debt is affected by changes in which Caesars' corporate family and probability of default
The first three are statistical techniques for estimating the probability of default based on factors like loan performance and characteristics of the borrower.
This upward bias increases proportionally with the probability of default and it is generally acknowledged that the probability of default is higher for small firms than for large firms.
Specifically, we use CMM to examine some factors that will affect the probability of default (PD) at the time a borrower seeks to refinance.
However, a growing number of organizations are questioning the assertion that a bureau risk score is adequate for Probability of Default estimation.
With the release of CDS-implied EDF credit metrics, probability of default measures are now available on entities with CDS contracts, such as sovereigns, local governments, subsidiaries of public firms, and large private companies.
Equity prices are up sharply, but the debt market continues to indicate a high probability of default," warned Simon Johnson, a professor at the Massachusetts Institute of Technology (MIT).