Ottonello, GiorgioHilberath, Julia2024-12-062024-12-062024-01-302023-12-20http://hdl.handle.net/10362/176279This thesis addresses the challenge of predicting defaults in high-yield bond markets by integrating forward-looking market data into regression analysis. While traditional models focus on firm-specific financial ratios, this study emphasizes the pivotal role of market sentiment data. These indicators capture real-time market dynamics and risk perceptions, offering a nuanced view of investor sentiment. In contrast, financial ratios, derived from historical financial statements, lack the timeliness to predict defaults effectively. The inclusion of market sentiment data enriches the model, providing a comprehensive and timely assessment of default risk in high-yield bond markets.engHigh-yieldDefaultRegressionMarket sentimentmaster thesis203681010