Answer
May 12, 2025 - 07:31 AM
Converting Through-the-Cycle (TTC) Probability of Default (PD) to Point-in-Time (PIT) PD involves adjusting for the current economic conditions and specific borrower circumstances. This typically requires incorporating current macroeconomic variables and borrower-specific information to reflect short-term risk, often using statistical models or expert judgment to adjust the TTC PD to align with current conditions. It is important to ensure that these adjustments are regularly updated to maintain accuracy.
