Course - Credit risk - FIN3501
FIN3501 - Credit risk
About
Lessons are not given in the academic year 2024/2025
Course content
This course gives an in-depth review of central models of credit risk. The course will start with an introduction to stochastic modelling using Brownian motions. There will also be an introduction to numerical methods (Monte Carlo simulations)
Learning outcome
Knowledge
You learn
- Mathematical modelling of risk and numerical methods to account for risk
- what credit risk is
- what factors are relevant to determine credit risk
- how capital structure decisions and credit risk are interrelated
Skills
You should be able to
- understand and explain what risk is
- make use of models for credit risk to analyze risk
- estimate the value of credit risky assets
- use ratings to assess credit risk
General competence
You should be able to
- use advanced economic models to assess credit risk
Learning methods and activities
2 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term. The term papers can be written as a joint project.
Compulsory assignments
- Compulsory aktivity
Further on evaluation
4 hours written school exam.
Recommended previous knowledge
IF400, IF440
Required previous knowledge
None
Course materials
Announced at the beginning of the term
No
Version: 1
Credits:
7.5 SP
Study level: Second degree level
No
Language of instruction: English
Location: Trondheim
- Financial Economics
- Economics
- Economics and Administration
Department with academic responsibility
Department of Economics
Examination
- * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
For more information regarding registration for examination and examination procedures, see "Innsida - Exams"