Hi, Thanks for the reply. I can see where you are coming from in terms of your answer. Most of the macroeconomic variables if not all tend to be not significant when it comes to measuring LGD. So I guess we can build a dataset sans macroeconomic variables at least for practice sake(I know its not ideal way to learn). I saw in SAS studio there is a procedure to simulate Regression dataset so I guess there must be a way forward to simulate LGD dataset with variables like LGD, EAD, Recovery cost, Value at Recovery. Regards, Srihari
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