Identifying the Right Forecasting Tool for Corporate Bond Defaults

A financial analyst is tasked with creating an economic forecast for an investment firm focused on distressed assets. The analyst has identified the potential for increased defaults in corporate bonds due to tightening monetary policies. To strengthen the forecast, the analyst considers various forecasting tools to understand the broader implications of this economic environment.

Which of the following forecasting tools would best help the analyst assess the potential increase in corporate bond defaults?