MERTON MODEL
A model, developed in 1970s, which evaluates the credit risk of a company’s debt using market information as the basis. Named after financial scholar Robert C. Merton, brokerage firm analysts and some investors apply this model to determine a firm’s capability to service its debt, meet financial obligations, and gauge the overall credit default potential.
Also called Asset Value Model.
POPULAR TERMS
Peace Dividend
It is the funds that become available in the budget of the national government when the county is at peace, and can afford to lessen its defense sp ...
Subprime Meltdown
Situation which affected the mortgage industry in 2007 because of approving individuals with poor credit rating. The housing boom in mid-2000s and ...
False Market
A market in which prices are manipulated by false information, preventing the efficient negotiation of prices. These types of markets will often be ...
Worldwide Coverage
Worldwide Coverage is an insurance policy that provides international coverage for personal property owned by the insured against any loss or damag ...
In the Pink
Informal expression that describes a situation in which an economy or investor is in a rosy financial position. More generally, it pertains to bein ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Principles of Trading: Leverage and Margin
All novice and seasoned traders need to befriend these two great tools to achieve success in trading: leverage and margin.
...
An Introduction to Student Loans
A college education is one of the most essential investment in a person’s life. Unfortunately, in this time and age, it has also become one o ...
Digesting Financial Statements: Long-Lasting Assets
Long-lived assets, also known as non-current assets, is any asset a company expects to keep for at least one year. Such assets are expected to boos ...
An Introduction to Ethical Investing
Ethical investing is, simply put, investing while taking into consideration your personal beliefs or your ethics. Because it is personal, it means ...
Renovate or Move?
You have a well-furnished home with a garden full of flowers and plants. Imagine sharing your beautiful abode, which has four bedrooms, a kitchen, ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 06:30 | Industrial Production | Jul | |
| 08:30 | Producer & Import Prices | Aug | |
| 11:01 | New Yuan Loans | Aug | |
| 14:30 | Consumer Price Index | Aug | |
| 14:30 | Consumer Price Index Core | Aug | |
| 14:30 | Common Core CPI | Aug | |
| 14:30 | Trimmed Core CPI | Aug | |
| 14:30 | Median Core CPI | Aug | |
| 14:30 | Manufacturing Shipments | Jul |
