We are trying to build a risk neutral PD Model for institutions without CDS.
In Malz's "Financial Risk Management: Models, History and Institutions", Chapter 7, its said that we can extract the hazard rate from the next equation:
My question is, Can we model λ extracted with bonds with an intensity model exactly as it's done with CDS?
Also, If we use Merton, Is it congruent with risk neutral valuation? (Therefore, Can be used for CVA Pricing Calculations?)
Thanks a lot!