How to prevent another financial crisis on Wall Street: Predicting the riskiness of real estate loans
نویسندگان
چکیده
The goal of our project was to predict the average spread of a loan given its other features and analyze which features have greater effects on its riskiness. In addition, given aggregate data on the number of defaults by property type, we examined whether those property types with higher default rates also had higher average spreads. The hope is that we will be able to predict the riskiness and default likelihood of a loan using only its features, and gain insight into business practices and market conditions.
منابع مشابه
How To Prevent Another Financial Crisis On Wall Street
Riskiness of a particular loan can be estimated based on several of its economic indicators. Although the actual relationship is very complicated, it is possible to construct a simplified model which can roughly classify a loan into one of the three categories high risk loan, medium risk loan and low risk loan based on certain criteria. This paper seeks to build such a model based on publicly a...
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