ABSTRACT
We begin our exposition by a brief non-informal tour through some credit risk modeling concepts recalling some basic facts we will need later in the book as well as making sure that we are all at the same page before Chapters 2 and 3 lead us to the ‘heart’ of our topic. A good starting point is a saying by Albert Einstein who seemingly made the observation
As far as the laws of mathematics refer to reality they are not certain; and as far as they are certain they do not refer to reality.1
