We present a theory of unsecured consumer debt that does not rely on utility costs of default or on enforcement mechanisms that arise in repeated-interaction settings. The theory is based on private information about a person’s type and on a person’s incentive to signal his type to entities other than creditors. Specifically, debtors signal their low-risk status to insurers by avoiding default ...

Modelling LGD for unsecured personal loans: Decision tree approach Lyn C. Thomas Christophe Mues Anna Matuszyk University of Southampton Abstract The Basel New Accord which is being implemented throughout the banking world on 1 January 2007 has made a significant difference to the use of modelling within financial organisations. In particular it has highlighted the importance of Loss Given Defa...

Loss Given Default (LGD) is the loss borne by the bank when a customer defaults on a loan. LGD for unsecured retail loans is often found difficult to model. In the frequentist (non-Bayesian) two-step approach, two separate regression models are estimated independently, which can be considered potentially problematic when trying to combine them to make predictions about LGD. The result is a poin...

INTRODUCTION Currently, there is little in the literature regarding the ability of rear seatbacks to act as a protective barrier from cargo in frontal crashes. However, it has been shown that unrestrained rear passengers pose a danger to front seat occupants. The association of rear seatback failures and intrusions with mortality and serious injury were examined. METHODS The Seattle CIREN dat...