Lando model

The Lando model is a financial framework used to value debt securities and assess default risk. It combines features of both equity and debt in its analysis, allowing for a more nuanced understanding of how a company's value affects its bonds. Essentially, it views a firm’s assets as a driving force behind its bond prices, taking into account the possibility of default and the overall economic environment. This model helps investors make informed decisions by estimating the likelihood of a company failing to meet its debt obligations.