{"id":303,"date":"2026-07-19T16:20:31","date_gmt":"2026-07-19T16:20:31","guid":{"rendered":"https:\/\/eclass.co.ke\/class\/lesson\/9-9-analysis-of-corporate-debt\/"},"modified":"2026-07-19T17:41:26","modified_gmt":"2026-07-19T17:41:26","slug":"9-9-analysis-of-corporate-debt","status":"publish","type":"eclass_lesson","link":"https:\/\/eclass.co.ke\/class\/lesson\/9-9-analysis-of-corporate-debt\/","title":{"rendered":"9.9 Analysis of corporate debt"},"content":{"rendered":"<p>The credit risk measures used for corporate or sovereign bonds can also be applied in Asset-backed Securities<\/p>\n<ul>\n<li>Probability of loss &#8211; In ABS, the probability of default does not apply, so it is replaced by the probability of loss.<\/li>\n<li>Expected loss<\/li>\n<li>Present value of the expected loss To calculate these measures, a model analogous to those used for corporate and sovereign debt is used.<\/li>\n<\/ul>\n<p>However, the calculations are much more complex<\/p>\n<ul>\n<li>With respect to the credit ratings of ABS, the credit-rating agencies use the same rating scale as that used for corporate and sovereign debt, although the fact that they are structured debt is always noted.<\/li>\n<li>Given the complexity of ABS, the use of the same credit rating scales may be inappropriate.<\/li>\n<\/ul>\n<h3>Lesson Wrap-Up<\/h3>\n<p>This lesson should leave you able to explain the analysis of corporate debt in a fixed-income context and connect it to the decisions made by issuers, investors, or analysts.<\/p>\n<h3>Review Prompts<\/h3>\n<ol>\n<li>Explain analysis of corporate debt in your own words.<\/li>\n<li>State one exam-style risk, valuation, or market implication of the analysis of corporate debt.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>The credit risk measures used for corporate or sovereign bonds can also be applied in Asset-backed Securities Probability of loss &#8211; In ABS, the probability of default does not apply, so it is replaced by the probability of loss. Expected loss Present value of the expected loss To calculate these measures, a model analogous to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","class_list":["post-303","eclass_lesson","type-eclass_lesson","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/eclass_lesson\/303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/eclass_lesson"}],"about":[{"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/types\/eclass_lesson"}],"author":[{"embeddable":true,"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/comments?post=303"}],"version-history":[{"count":2,"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/eclass_lesson\/303\/revisions"}],"predecessor-version":[{"id":439,"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/eclass_lesson\/303\/revisions\/439"}],"wp:attachment":[{"href":"https:\/\/eclass.co.ke\/class\/wp-json\/wp\/v2\/media?parent=303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}