Before revision:  The presented forward PDs can be used for the derivation of  lifetime credit losses  required by the new accounting standard IFRS 9. In doing so, the presented approach is endogenous, as it does not require any exogenous macroeconomic forecasts  which are notoriously unreliable and often subjective  .
After revision:  The resulting PD forecasts can be used for the derivation of lifetime credit losses required by the new accounting standard IFRS 9. In doing so, the presented approach is endogenous, as it does not require any exogenous macroeconomic forecasts which are notoriously unreliable and often subjective .