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Note rate modifications and subprime default rates

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Sarmiento, Camilo
Abstract (Spanish)
Un instrumento importante para mitigar las pérdidas crediticias es la modificación de las tasas de interés de los prestatarios en dificultades. A partir de un modelo logístico de incumplimiento anticipado, este artículo infiere el impacto de la tasa de los pagarés en las probabilidades de incumplimiento de los préstamos, controlando al mismo tiempo las características del préstamo (calidad crediticia) y la ubicación del prestatario.
Abstract (English)
An important instrument to mitigate credit losses is modification of note rates of distressed borrowers. From a logistic model of early default, this article inferred the note rate impact on loan default probabilities, while controlling for loan characteristics (credit quality) and borrower location.
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6 páginas
URI: https://repositorio.escuelaing.edu.co/handle/001/2751
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AG - Centro de Estudios Económicos
References

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