TY - JOUR T1 - An Empirical Study of Structural Credit Risk Models Using Stock and Bond Prices JF - The Journal of Fixed Income SP - 38 LP - 49 DO - 10.3905/jfi.2004.391026 VL - 13 IS - 4 AU - Jan Ericsson AU - Joel Reneby Y1 - 2004/03/31 UR - https://pm-research.com/content/13/4/38.abstract N2 - Reduced-form credit risk models are often thought to be better suited than structural models for pricing corporate bonds. The authors challenge this view. Conditioned not only on equity but on bond and dividend information also, a structural model performs well compared to previously tested reduced-form models. In the pricing of bond portfolios, model errors are to a large extent diversifiable. ER -