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SK C&C (client KDB) · Jan 2018 – Jul 2018

Early Warning for Corporate Distress

Role · Text analytics, event-pattern analysis

01Background & Goals

  • A big-data pilot by Korea Development Bank (KDB) to recognize signs of corporate distress early.
  • It provides a multi-dimensional default-prediction index built from stock moves, industry sentiment and an event-based distress index.

02Contributions

Event-based distress index
  1. Extracted the core components (subject, verb, object) of news sentences about a company
  2. Embedded their relations as vectors to assess signs of distress
Industry sentiment index
  1. Built industry sentiment indices from news and analyzed their correlation with industry stock indices

03Tech Stack

Framework / Platform
PyTorch, scikit-learn
Methodology
NLP, Sentiment analysis, Anomaly detection

04Results

  • Piloted in KDB's corporate credit-risk assessment system