The Mathematics of Trust: Optimizing Credit Risk Profiles for Capital Efficiency
In the modern financial infrastructure, the credit score serves as the primary metric for pricing risk. It is a quantified expression of a borrower's probability of default, distilled into a three-digit integer. For the individual consumer, this number dictates the "cost of capital" the interest rate paid on mortgages, automotive loans, and revolving credit lines. Despite its critical role in...
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