Managing Credit Risk: The Next Great Financial Challenge

<body stylesrc="../_private/template_title.htm" topmargin="10" leftmargin="10" bgcolor="#FFFFFF" link="#333366" vlink="#000000" alink="#000000"> <div align="left"> <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="0" id="table2"> <tr> <td width="780"> <div align="center"> <table border="0" cellpadding="5" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table3"> <tr> <td align="right" height="198" width="1%"> <p align="left"> <img src="../images/book_caouette.gif" alt="book_caouette.gif (13446 bytes)" border="0" width="140" height="200"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" id="table4"> <tr> <td colspan="3" width="0%"> <p class="book_title">Managing Credit Risk<br> <span class="book_title_sub">The Next Great Financial Challenge</span></td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> <img border="0" src="../images/blank_2x2.gif" width="2" height="2"><img border="0" src="../images/blank_2x2.gif" width="2" height="2"></td> <td width="52%" class="book_details_tags" valign="top" height="144" align="left" rowspan="9"> <map name="FPMap2"> <area href="../main/ratings.htm" shape="rect" coords="62, 0, 152, 33"> </map> <img border="0" src="../images_title/caouet37.gif" usemap="#FPMap2" width="272" height="158"></td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" height="32" align="center" width="50%" rowspan="2"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> </tr> </table> </td> </tr> </table> </div> <div align="center"> <center> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="468" id="table5"> <tr> <td> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </center> </div> <table border="0" cellpadding="5" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table6"> <tr> <td width="50%" valign="top" rowspan="2"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table7"> <tr> <td width="100%" bgcolor="#333366"> <p class="header_yellow" align="center">Contents</td> </tr> <tr> <td width="100%" class="explanatory_text"> <table border="1" cellpadding="0" cellspacing="5" style="border-collapse: collapse" bordercolor="#CCCCFF" bgcolor="#CCCCFF" width="100%" id="table8"> <tr> <td class="contents_expanded"> <p class="contents_compressed" style="margin-left: 4; margin-right: 4; margin-top: 12">1 Credit Risk: The Next Great Challenge of the Financial Markets</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">2 Credit Culture</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">3 Classic Industry Players - Banks, Finance Companies, Insurance Companies, Industrial Companies</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">4 Portfolio Managers - Investment Managers Unit Trusts, Mutual Funds, Pension Funds</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">5 Structural Hubs: Derivative Dealers, Clearinghouses, and Exchanges</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">6 Rating Agencies</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">7 Classic Credit Analysis</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">8 Asset-Based Lending</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">9 Introduction to Credit Risk Models</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">10 Credit Risk Models Based on Accounting Data and Market Values</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">11 Corporate Credit Risk Models Based on Stock Price</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">12 Consumer Finance Models</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">13 Credit Models for Small Business, Real Estate, and Financial Institutions</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">14 Testing and Implementation of Credit Risk Models</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">15 Default Rates, Losses, and Recoveries</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">16 Credit Risk Migration</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">17 Introduction to Portfolio Approaches</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">18 Credit Pricing, Risk-Adjusted Return, and Allocation of Capital</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">19 Applications of Portfolio Approaches</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">20 Credit Derivatives</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">21 Credit Risk of Derivatives</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">22 Country Risk Models</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">23 Structured Finance</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">24 A New World Driven by Analytics and Diversifying Agents</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4">25 The Rediscovery of Culture as a Primary Management Tool</p> <p class="contents_compressed" style="margin-left: 4; margin-right: 4"> Appendix</p> </td> </tr> </table> </td> </tr> </table> </td> <td width="50%" valign="top" class="body"> <p class="body_expanded"><strong style="font-weight: 400">This is an ambitious and surprisingly good book on credit risk. Rather than specialize in certain aspects of this diverse topic, the authors provide an overview. They take us from the statistics of consumer credit to the intricacies of credit derivatives. We learn about traditional credit analysis, collateral, clearinghouses, downgrade triggers, potential credit exposure and much more. There is a chapter on rating agencies, extensive information on the latest credit risk models and details on the nature of defaults. Inevitably, the coverage has greater depth in certain areas than others; however, there are extensive references for further reading. The authors don't merely list lots of references. They list the <em>right</em> references.</strong></p> <p class="body_expanded"><strong style="font-weight: 400">For experienced financial professionals who are either transitioning into a credit role or must interact with credit professionals, this is an excellent book. For students or someone just starting a financial career, the book may be slightly heavy going, as it does assume some practitioners' knowledge.</strong></p> <p align="center" class="body"> </p> </td> </tr> <tr> <td width="50%" valign="bottom" class="body"> <table border="0" cellpadding="5" cellspacing="0" style="border-collapse: collapse" width="100%" bgcolor="#FFFFCC" id="table9"> <tr> <td width="100%" align="left"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </td> </tr> </table> <div align="left"> <div align="left"> <div align="left"> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" bgcolor="#CCCCFF" id="table10"> <tr> <td width="100%" align="center"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </div> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" bgcolor="#FFFFCC" id="table11"> <tr> <td width="100%" align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" bgcolor="#FFFFCC" id="table12"> <tr> <td> <p class="body" style="margin-bottom: 6; margin-left:10"><b><font color="#333366" size="3">For related books, see sections:</font></b></p> <p class="bullet" style="margin-left: 10; margin-top:5; margin-bottom:5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/risk_management_credit_institutional.htm">Risk Management - Credit Risk</a></p> <p class="bullet" style="margin-left: 10; margin-top:5; margin-bottom:5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/risk_management_general.htm">Risk Management - General</a></td> </tr> </table> </td> </tr> </table> </div> </div> </td> <td>  </td> </tr> </table> </div>  <table border="0" style="border-collapse: collapse" width="100%" cellpadding="0" id="table1" bgcolor="#FFFFFF"> <tr> <td colspan="2" height="12"> <p style="margin-top: 0"> </td> </tr> <tr> <td align="right"> <p align="left" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Ads by Contingency Analysis.</font></a></td> <td align="left"> <p align="right" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Advertise on this site.</font></a></td> </tr> <tr> <td align="center" colspan="2">  <iframe src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=iframe" allowtransparency="true" background-color="transparent" style="margin: 0px; padding: 0px; border-width: 0px" width="300" height="250" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"> <![if lt IE 4]> <script src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=js" type="text/javascript"> </script> <noscript> <a href="http://servedbyadbutler.com/go2/;ID=147917;size=300x250;setID=93136"> <img src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=img" border="0" height="250" width="300" alt=""></a> </noscript><![endif]> </iframe>   </td> </tr> </table> <p align="center" style="margin-top: 20"> <map name="FPMap0_I1"> <area href="http://www.riskbook.com" shape="rect" coords="0, 0, 184, 29" target="_top"></map> <img border="0" src="../images/open_book_riskbook.gif" usemap="#FPMap0_I1" width="185" height="30"></p> <p class="a" align="center"><font face="Arial" size="2"><a href="../main/disclaimer.htm">disclaimer</a></font></p> <p class="a" align="center"><span class="verdana10">website:</span> <a target="_top" href="http://www.contingencyanalysis.com"> <font size="2" face="Arial">http://www.contingencyanalysis.com</font></a><br> <span class="verdana10">books direct link:</span> <a target="_top" href="http://www.riskbook.com"><font size="2" face="Arial">http://www.riskbook.com</font></a><br> copyright <font face="Times New Roman">©</font> Contingency Analysis, 1996 - current</p> <p class="a" align="center"><map name="FPMap1_I1"> <area target="_top" href="http://www.contingencyanalysis.com" shape="rect" coords="0, 0, 240, 88"> </map><img border="0" src="../images/logo_book_white.gif" usemap="#FPMap1_I1" width="241" height="89"></p>  </body>