Enhancing credit risk assessment using AI and big data in modern finance

The recent financial turmoil has provided substantial motivation for this research. It is not apparent how a diverse set of economic actors may borrow from markets of different government debts and thereby contend with choices which may replicate those of a monolithic government debt issuer. Discussions of financial contagion and the "domino effect" of punishment in world capital markets arise from considerations which here receive novel and causal treatment. Similar models can be constructed for the contagious spread of bankruptcies and defaults in other markets. The analysis points toward understanding the fault lines which expose systemic risk in modern financial systems.