... dedicatedto the application of migration matrices in the process of calibration,valuation, and pricing of these products.1.7 Chapter OutlineChapters 2, 3, and 4 provide a rather broad view and introduction ... discrete and continuous-time modeling of rating migra-tions and illustrate the advantages of the continuous-time approach. Fur-ther, the problems of embeddability and identification of generator ... 4 and 5. Further, the application of migration matrices for deriv-ing cumulative default probabilities and the pricing of credit derivativeswill be illustrated in Chapter 11.1.5 Stability of...