Abstract

http://ssrn.com/abstract=912031
 


 



MNB One Credit Card Portfolio


Samuel E. Bodily


University of Virginia - Darden School of Business

Jason Hull


affiliation not provided to SSRN


UVA-QA-0613

Abstract:     
A credit-card company must value portfolios of customers based on their future earnings. The payment characteristics of customers serve to classify them into states. This case can be the basis for discussing state dynamics over time in a Markov process. Students can gain an understanding of how portfolios that look good in the present may not be favorable in the long term, and how to find and use steady-state probabilities. Students can also see how changing transition probabilities affect steady-state distributions.

Number of Pages in PDF File: 9

Keywords: banking, financial services

JEL Classification:

Case and Teaching Paper Series


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Date posted: October 21, 2008  

Suggested Citation

Bodily, Samuel E. and Hull, Jason, MNB One Credit Card Portfolio. , Vol. , pp. 1-9, . Available at SSRN: http://ssrn.com/abstract=912031

Contact Information

Samuel E. Bodily (Contact Author)
University of Virginia (UVA) - Darden School of Business ( email )
P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4813 (Phone)
434-293-7677 (Fax)
HOME PAGE: http://www.darden.virginia.edu/faculty/bodily.htm
Jason Hull
affiliation not provided to SSRN
Feedback to SSRN


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