Steinmodel
Steinmodel refers to a statistical model used in finance to describe the behavior of financial assets, particularly in the context of credit risk assessment. The term is derived from the name of economist Mark J.P. Stein, who developed the concept in the 1990s.
In the Steinmodel, the creditworthiness of an individual or a firm is viewed as a non-negative random
The Steinmodel has several key characteristics, including the ability to capture both systematic and idiosyncratic credit
The Steinmodel is built upon several assumptions, including the idea that credit failures are instantaneous events
While the Steinmodel has gained widespread acceptance in the industry, critics argue that it oversimplifies the