Instantaneous rate models, although theoretically satisfying, are lessso in practice. Instantaneous rates are not observable and calibra-tion to market data is complicated. Hence, the need for a marketmodel where one models LIBOR rates seems imperative. In thismodeling process, we aim at...

In this study, we design stepwise ordinary least squares regression models using various amalgamations of firm features, loan characteristics and macroeconomic variables to forecast workout recovery rates for defaulted bank loans for private non-financial corporates under downturn conditions in...