Description: Panelists: [1] describe the goals, purposes, and current status of the Society of Actuaries' research into the credit risk of commercial mortgages and private-placement bonds, [2] describe the theory behind the new AVR and IMR and how they function, [3] describe their use from the valuation actuary’s perspective, and [4] discuss the potential impact the AVR/IMR may have on investing and accounting decisions. Session 11 of the 1992 Valuation Actuary Symposium.

Description: This session at the SOA 1990 Annual Meeting explores credit risk issues including the inadequacies of current data and methodologies to measure it. A disciplined actuarial methodology for measuring credit risk and efforts underway for an intercompany study are discussed.