https://www.openriskmanual.org/wiki/index.php?title=Point-in-time&feed=atom&action=historyPoint-in-time - Revision history2024-03-28T10:09:43ZRevision history for this page on the wikiMediaWiki 1.30.0https://www.openriskmanual.org/wiki/index.php?title=Point-in-time&diff=942&oldid=prevWiki admin at 17:39, 15 October 20172017-10-15T17:39:25Z<p></p>
<p><b>New page</b></p><div>== Definition ==<br />
'''Point-in-time''' (PIT) is a technical characterization of a [[Credit Rating System]]. Point-in-time ratings aim to evaluate the [[Credit Risk]] of a borrower by taking into account both dynamic (volatile, stochastic, cyclical) and permanent (static, slowly varying) characteristics.<br />
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Point-in-time ratings react to changes of the borrower's current economic situation one updates rating system inputs to determine the current rating <br />
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== Issues and Challenges ==<br />
* While the essence of the point-in-time characterisation is valid, the "cycle" terminology can be misleading, implying regular oscillatory economic dynamics. The ability to identify of a recurrent cycle is neither obvious nor required<br />
* The inclusion of some but not all relevant dynamic information into the rating system produces various hybrids which may have unclear response to changing conditions. <br />
* The inclusion of distinct portfolio segments with differing type of rating systems into the same [[Rating Scale]] produces an overall framework with undefined dynamic characteristics<br />
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== See Also ==<br />
* [[Rating System Cyclicality]]<br />
* [[Point-in-time versus Through-the-cycle]]<br />
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[[Category:Credit Rating System]]</div>Wiki admin