Unlike the case of constant, nondiscounted exposures, where the timing of the default is inconsequential, nonconstant exposures or discounting of the losses implies that the timing of the default is critical for tabulating the economic loss.
Exhibit 11 illustrates the impact of nonconstant loss exposures in terms of tabulating loss distributions.
Tabulating the marginal default probabilities from the cumulative is a straightforward exercise.
The second challenge arises in regard to tabulating the marked-to-market value losses for liquid assets should a credit event occur.
Tabulating the losses from retail mortgage, credit card, and overdraft portfolios proceeds along similar lines.
The tabulating industry, embryonic at the time of this meeting, would be dominated in the United States by two firms: the firm founded by Hollerith became the core of International Business Machines (IBM); that founded by Hollerith's main rival, James Powers, became part of Remington Rand.
During the first half of the twentieth century, tabulating equipment became an increasingly central part of the life insurance business, transforming its processes and paving the way for later computerization.
Of course, life insurance was not the only industry using and influencing tabulating technology.
All of these characteristics influenced company decisions about tabulating technology, as well as the industry's overall approach to information technology.
The Origin and Nature of Punched-Card Tabulating Technology
Tabulating technology was initially developed by Herman Hollerith to speed up the processing of data collected in the 1890 U.S.