Estimate tranche-level expected losses and default probabilities using a one-factor Gaussian Copula framework. Simulate thousands of correlated credit scenarios to construct portfolio loss distributions, evaluate tranche performance and quantify structured credit risk under realistic default dependencies.
Simulate thousands of correlated default scenarios to generate robust portfolio loss distributions.
Measure expected losses, attachment and detachment behaviour, and default probabilities across all tranches.
Model correlated defaults using a one-factor Gaussian Copula to capture systematic credit risk across the portfolio.
