We document novel facts about the U.S. stock market during the past forty years which show opposing characteristics to the prior decades: A negative cross-sectional correlation between firms' investment and profitability, and strong premia of investment and profitability factors which are...

Banks' internal credit risk assessment may take into account not only publicly available ratings but also internal measures of credit risk. We present a credit rating model of credit risk that permits banks to employ their own risk assessment in addition to public rating information. Banks need...