---
title: Credit Risk Classification using ML
url: https://www.ml-quant.com/papers/ssrn/5138444/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5138444
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5138444
featured: 2025-02-26
citations: unknown
topic: Risk, Credit & Banking
---


# Credit Risk Classification using ML

The paper uses a machine learning approach to estimate credit risk and classify bond price risk based on financial metric fluctuations.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5138444
- Identifier: SSRN 5138444
- Released: 2025-02-14
- First featured: Quant Letter No. 86 (2025-02-26): https://www.ml-quant.com/issues/2025-02-26/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking

## Related

- [Modelling the term-structure of default risk under IFRS 9 within a multistate regression framework](https://www.ml-quant.com/papers/arxiv/2502.14479/): A study comparing three loan behavior modeling techniques finds multinomial logistic regression to be the most effective, potentially improving loss reserve estimates in banking.
- [The Relative Entropy of Expectation and Price](https://www.ml-quant.com/papers/arxiv/2502.08613/): The article explores the non-linear pricing in incomplete securities markets, measuring strategic risks using an entropic risk metric and adjusting the price for market incompleteness and default risk.
- [Recalibrating binary probabilistic classifiers](https://www.ml-quant.com/papers/arxiv/2505.19068/): The article discusses recalibrating binary probabilistic classifiers from a distribution shift perspective, introducing two new methods for conservative results in credit risk assessments.
- [The Determinants of Net Interest Margin in the Turkish Banking Sector: Does Bank Ownership Matter?](https://www.ml-quant.com/papers/arxiv/2506.04384/): A study on the Turkish banking sector identifies operation diversity, credit risk, and operating costs as key factors influencing net interest margin, with impacts varying across different bank types.
- [Upper Comonotonicity and Risk Aggregation Under Dependence Uncertainty](https://www.ml-quant.com/papers/arxiv/2406.19242/): The research investigates the concept of dependence uncertainty and its effect on tail risk measures in relation to credit risk, showing that even minor positive dependence between losses can lead to perfectly correlated tails beyond a certain point.
- [Financial Fragilities and Risk-taking of Corporate Bond Funds in the Aftermath of Central Bank Policy Interventions](https://www.ml-quant.com/papers/ssrn/4463970/): It finds that central bank asset purchases during the pandemic led corporate bond fund managers to take more risks, affecting market stability.
