KMV model explained: Modelling default risk (Excel)

KMV is one of the most famous models for modelling the default risk of companies. It utilises stock market data and fundamental data as well as the Merton valuation model to calculate how likely the company is to breach its default threshold. Today we are discussing the concepts behind KMV and its implementation in Excel. Don't forget to subscribe to NEDL and give this video a thumbs up for more videos in Finance! Please consider supporting NEDL on Patreon: https://www.patreon.com/NEDLeducation