Sorry, I passed the wrong link. It was already fixed. data Bonds; length rating next_rating $7; input bond_id rating $ start_year end_year current_year next_rating $; datalines; 1 a 2000 2004 2000 a 1 a 2000 2004 2001 a 1 a 2000 2004 2002 a 1 a 2000 2004 2003 a 1 a 2000 2004 2004 b 1 b 2005 2008 2005 b 1 b 2005 2008 2006 b 1 b 2005 2008 2007 b 1 b 2005 2008 2008 c 1 c 2009 2010 2009 c 1 c 2009 2010 2010 default 2 b 2003 2005 2003 b 2 b 2003 2005 2004 b 2 b 2003 2005 2005 a 2 a 2006 2007 2006 a 2 a 2006 2007 2007 default 3 c 2001 2006 2001 c 3 c 2001 2006 2002 c 3 c 2001 2006 2003 c 3 c 2001 2006 2004 c 3 c 2001 2006 2005 c 3 c 2001 2006 2006 default ; proc iml; use Bonds; read all var {bond_id rating next_rating}; close; R = unique( rating // next_rating ); numR = ncol(R); C = j(numR, numR, 0); mattrib C rowname=R colname=R; /* data does not contain any information about default transitions. Assume default is end state */ C['default','default'] = 1; do i = 1 to numR; do j = 1 to numR; C[i,j] = sum( rating=R[i] & next_rating=R[j] ); end; end; C = C / C[,+]; /* divide each row by sum of row */ print C[format=fract20.]; This is the code, I didn't receive an error, It's jumping values, because I don't have this 'Default' observation and because I comment the line in red.
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