Credit is the expectation of a sum of money within some limited time. Credit risk is the chance that expectation will not be met. It is the oldest risk in financial markets, yet its more recent counterpart, market risk, has traditionally received the expert’s attention and so is dealt with in a more effective, state-of-the-art manner. In recent years market professionals, banks, and other institutions which have credit risk, created new instruments, like derivatives, by which to sell or trade this risk. This commodification of credit risk has created the credit markets. These markets have grown exponentially, creating the need for information and an analytic foundationthis book provides just that.
Book Details:
- Author: John B. Caouette
- ISBN: 9780470301463
- Year Published: 1998
- Pages: 464
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Credit is the expectation of a sum of money within some limited time. Credit risk is the chance that expectation will not be met. It is the oldest risk in financial markets, yet its more recent counterpart, market risk, has traditionally received the expert’s attention and so is dealt with in a more effective, state-of-the-art manner. In recent years market professionals, banks, and other institutions which have credit risk, created new instruments, like derivatives, by which to sell or trade this risk. This commodification of credit risk has created the credit markets. These markets have grown exponentially, creating the need for information and an analytic foundationthis book provides just that.
Credit risk is a factor not only to lenders but also to any company that receives funds for products or services. This is a topic of interest within the financial services world and elsewhere. Inportant marketing potential through CapMAC client base.
Gathers into one volume the mass of information and new analytical frameworks on credit risk and credit markets. * Offers a broad variety of techniques–historically applied to control market risk which are now applicable to credit risk. * Explores the historical roots of credit management, and where it stands today. * Analyzes both the problems that have occured in the explosive growth period (i.e., the failures of the S&L’s, the derivatives debacles) and the solutions that have enabled the credit market to continue growing. * Covers a hot topic in financial services–credit risk is not only a factor for lenders but also any company that receives funds for products or services. * Includes infromation on credit risk in banking, insurance, the industrial sector, financial companies, and more.
About the Author
JOHN B. CAOUETTE is President of the Structured Finance Division of MBIA Insurance Corporation. He was formerly Chairman and CEO of Capital Markets Assurance Corporation. EDWARD I. ALTMAN is the Max Heine Professor of Finance at New York University Stern School of Business and Vice Director of its Salomon Center. His previous publications include Corporate Bankruptcy in America and Corporate Finance and Bankruptcy (Wiley). PAUL NARAYANAN is a credit and financial risk consultant who has worked in risk management at Chase Manhattan Bank, BankBoston, and Meritor PSFS. He is cobuilder of the Zeta model and has designed and implemented risk models for consumer, residential, and corporate sectors.