A Research Paper on How Does Rating Model Work?

by Adem Çetinkaya, Z Yoshua Zhang, M Yann Hao, Y Xing Ma 

Abstract:

Ratings are forward-looking opinions about the ability and willingness of debt issuers, like corporations or governments, to meet their financial obligations on time and in full. They provide a common and transparent global language for investors and other market participants, corporations and governments, and are one of many inputs they can consider as part of their decision-making processes. 
 
In our Machine Learning experiment, we focus on an approach known as decision making using game theory. We apply principles from game theory to model the relationships between rating actions, news, market signals and decision making. As part of stock ratings surveillance, Neural network continuously analyze real-time and historical data. If network see events taking place that impact our view on an issuer’s relative performance, we adjust our ratings accordingly to communicate our views so the market has the correct perception of how we view relative stock performance.

Keywords: Rating,Neural Networks,Game Theory,Support-Vector Machines,Solving Risk Problems,Stock Forecast

Cite this Article
 
Çetinkaya, Adem. (2020, May 24). A Research Paper on How Does Rating Model Work?. AC Investment Research.https://www.ademcetinkaya.com/p/how-does-rating-model-work.html
 
 
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