In This Issue: The Differing Role Of Quantitative Analytics In Credit And Equity Ratings: It stands to reason that quantitative methods are becoming an increasingly important part of financial modeling. After all, the primary purpose for using mathematical models in financial analysis is to evaluate risk so as to maximize returns on investments. Modern portfolio theory actually goes back more than 50 years, and Standard & Poor's has been developing quantitative models for many years in both the credit and equity divisions.Choosing The Right Quantitative Model For The Job: Quantitative models have become an essential part of today's financial markets. Most investors base their financial decisions on one or more quantitative models Fitting Time Into Models Of Default Recovery Rates: The probability of default is a key concern for anyone who invests in debt instruments. Beyond the risk of default, however, is the question of recoverability, which determines what investors will receive if a default actually occurs. As Structured Investment Vehicles Become More Popular, Risk Models Become More Sophisticated: With assets under management in the global structured investment vehicle sector at $265 billion, measuring the risk in these instruments is a key priority. Quantitative Analytics, Tools, And Models In Today's Ratings Process-And Tomorrow's: In reality, quantitative analysis provides models that enable analysts to perform sophisticated analyses, sometimes even as credit events are happening. | 
