Determinants of commercial mortgage-backed securities credit ratings: Australian evidence

Using artificial neural networks (ANN) and ordinal regression (OR) as alternative methods to predict Commercial Mortgage-backed Securities (CMBS) credit ratings, we examine the role that various financial and industry-based variables have on CMBS credit ratings issued by Standard and Poor’s from 199...

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Bibliographic Details
Main Authors: Chikolwa, B., Chan, Felix
Format: Journal Article
Published: Vilnius Jediminas Technical University, Lithuanian Academy of Sciences and Napier University 2008
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/48145
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author Chikolwa, B.
Chan, Felix
author_facet Chikolwa, B.
Chan, Felix
author_sort Chikolwa, B.
building Curtin Institutional Repository
collection Online Access
description Using artificial neural networks (ANN) and ordinal regression (OR) as alternative methods to predict Commercial Mortgage-backed Securities (CMBS) credit ratings, we examine the role that various financial and industry-based variables have on CMBS credit ratings issued by Standard and Poor’s from 1999–2005. Our OR results show that rating agencies use only a subset of variables they describe or indicate as important to CMBS credit rating as some of the variables they use were statistically insignificant. Overall, ANN show superior results to OR in predicting CMBS credit ratings.
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spelling curtin-20.500.11937-481452023-02-22T06:24:19Z Determinants of commercial mortgage-backed securities credit ratings: Australian evidence Chikolwa, B. Chan, Felix Credit rating prediction Ordinal regression Artificial neural networks Commercial mortgage-backed securities Using artificial neural networks (ANN) and ordinal regression (OR) as alternative methods to predict Commercial Mortgage-backed Securities (CMBS) credit ratings, we examine the role that various financial and industry-based variables have on CMBS credit ratings issued by Standard and Poor’s from 1999–2005. Our OR results show that rating agencies use only a subset of variables they describe or indicate as important to CMBS credit rating as some of the variables they use were statistically insignificant. Overall, ANN show superior results to OR in predicting CMBS credit ratings. 2008 Journal Article http://hdl.handle.net/20.500.11937/48145 10.3846/1648-715X.2008.12.69-94 Vilnius Jediminas Technical University, Lithuanian Academy of Sciences and Napier University unknown
spellingShingle Credit rating prediction
Ordinal regression
Artificial neural networks
Commercial mortgage-backed securities
Chikolwa, B.
Chan, Felix
Determinants of commercial mortgage-backed securities credit ratings: Australian evidence
title Determinants of commercial mortgage-backed securities credit ratings: Australian evidence
title_full Determinants of commercial mortgage-backed securities credit ratings: Australian evidence
title_fullStr Determinants of commercial mortgage-backed securities credit ratings: Australian evidence
title_full_unstemmed Determinants of commercial mortgage-backed securities credit ratings: Australian evidence
title_short Determinants of commercial mortgage-backed securities credit ratings: Australian evidence
title_sort determinants of commercial mortgage-backed securities credit ratings: australian evidence
topic Credit rating prediction
Ordinal regression
Artificial neural networks
Commercial mortgage-backed securities
url http://hdl.handle.net/20.500.11937/48145