Original Source: Investopedia

“The Merton model is an analysis model – named after economist Robert C. Merton – used to assess the credit risk of a company’s debt. Analysts and investors utilize the Merton model to understand how capable a company is at meeting financial obligations, servicing its debt, and weighing the general possibility that it will go into credit default. This model was later built out by Fischer Black and Myron Scholes to develop the Black-Scholes pricing model…”

Contributors: Investopedia
Categories: Industry Articles, SIG U Resource
SRC Type: Risk Management, Sourcing Management, Third Party Management