Limitations of Quantitative Credit Risk Models

As a portfolio manager, you are tasked with assessing and managing the credit risk associated with a collection of corporate bonds in your investment portfolio. One of your peers introduces a new analytical approach to evaluate the risk of default across these holdings, suggesting the use of a scoring model comprised of multiple quantitative factors such as profitability, liquidity, and leverage ratios.

However, you are considering how effectively this model might predict credit risk in the context of broader economic conditions and firm-specific events. Which of the following statements best describes a key limitation of relying solely on quantitative scoring models for credit risk assessment?