Jarrow–Turnbull model
Jarrow–Turnbull model - brief summary
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The Jarrow–Turnbull model is a widely used reduced-form credit risk model. It was published in 1995 by Robert A. Jarrow and Stuart Turnbull. Under the model, which returns the corporate's probability of default, bankruptcy is modeled as a statistical process.The model extends the reduced-form model of Merton (1976) to a random interest rates framework.
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