Risk assessment of credit securities: The notion and the issues

Stelvio Cimato, Ernesto Damiani, Gabriele Gianini

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Assessing risk associated to structured financial products requires processing information about diverse risk factors. Some information comes from the different sources directly in aggregated form, so that it is not possible to estimate the correlation among different risk components. In this paper we argue that Secure Multiparty Computation could be used to merge the information from the different sources so as to compute more accurately the overall risk profile of securitized assets, thanks to the use of reliable information from the individual sources, but without disclosing the information from each source. Our simple model for securitization can solve in many cases information asymmetries between lenders and borrowers.

Original languageBritish English
Title of host publicationProceedings of the 2012 6th IEEE International Conference on Digital Ecosystems and Technologies
Subtitle of host publicationComplex Environment Engineering, DEST 2012
DOIs
StatePublished - 2012
Event2012 6th IEEE International Conference on Digital Ecosystems and Technologies: Complex Environment Engineering, DEST 2012 - Campione d'Italia, Italy
Duration: 18 Jun 201220 Jun 2012

Publication series

NameIEEE International Conference on Digital Ecosystems and Technologies
ISSN (Print)2150-4938
ISSN (Electronic)2150-4946

Conference

Conference2012 6th IEEE International Conference on Digital Ecosystems and Technologies: Complex Environment Engineering, DEST 2012
Country/TerritoryItaly
CityCampione d'Italia
Period18/06/1220/06/12

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