Hi David, hi Nicole,
I think there are several typos in the chapter 15 "Basel I, II, and Solvency II". On p. 14 there is a table which shows risk weights for different ratings. However in the examples under the table I cannot understand why different weights are used than those in the table:
Also on the same page in the Example 3 a risk weight of 50% is used for the rating AAA. I think the corresponding rating should be A+, A or A-:
Thank you for clarifying this.
Best regards!
I think there are several typos in the chapter 15 "Basel I, II, and Solvency II". On p. 14 there is a table which shows risk weights for different ratings. However in the examples under the table I cannot understand why different weights are used than those in the table:
Also on the same page in the Example 3 a risk weight of 50% is used for the rating AAA. I think the corresponding rating should be A+, A or A-:
Thank you for clarifying this.
Best regards!