Moody's KMV Credit Monitor model compares loans with option payoffs.

Name: Moody's KMV Credit Monitor model compares loans with option payoffs.
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Moody's KMV Credit Monitor model is primarily focused on assessing the credit risk of a firm by estimating the likelihood that the firm will default on its obligations. It does not compare loans with option payoffs but rather uses the firm's equity value and its volatility to estimate the distance to default, which is a measure of credit risk.

Moody's KMV Credit Monitor Model Compares Loans with Option Payoffs