Debtor Representation

From Open Risk Manual

Definition

Debtor Representation, in the context of a Credit Network model is the set of abstractions that describe a network participant (legal entity) that has one or more debt relationships with other network members.

NB: Other names in various contexts are client, borrower, obligor

Data Structure

The Debtor data collection is an abstract population of N distinct references. These can be corporate issuers, SME's or other legal entities, indexed by i=1,\ldots,N.

Minimally the following data are required

Issues and Challenges

There is a sharp distinction of Debtor data from Product data. The former apply to a borrower more-or-less independently of possible credit contracts (products) they may hold. These set are not cleanly distinct. E.g. the creditworthiness of a borrower is correlated with the number and type of credit products they may hold.



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