Leveraged Financial Markets: A Comprehensive Guide to Loans, Bonds, and Other High-Yield Instruments

by Maxwell, William; Shenkman, Mark

• ISBN13: 9780071746687
• ISBN10: 0071746684
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-07-13
• Publisher: McGraw Hill

Summary

The most complete guide available to the high-yield and distressed-debt marketsLeveraged Financial Marketsopens up a world where investors take short and long positions on the riskiest forms of debt financing. Through the eyes of the players and thinkers who live in the high-yield and distressed debt markets, this timely book gives you the background and strategies you need to successfully diversify your portfolio and capture a higher return on your investment.You'll hit the ground running with this book's proven models and formulas for implementing covered strategies in the real world. Leveraged Financial Markets features perspectives from the world's top authorities on high-yield bonds, credit derivatives, and other forms of distresseddebt. It's a must-have for every investor who wants to: Diversify risk in a meritable asset class Lock in an excellent risk return profile Develop significant annual cash flowsFrom the nuts and bolts of leveraged finance to the differences between CLOs and structured finance CDOs to common pitfalls of high-yield assetsLeveraged Financial Marketshelps you master one of the riskiest yet most profitable markets in finance today.Table of ContentsPart I: Market Structure Chapter 1.The High Yield Market Chapter 2.The Globalization of the High-Yield Market Chapter 3.Bond RatingsPart II: High-Yield Bonds Chapter 4.High-Yield Bonds as an Asset Class Chapter 5.The Issuers and Investors in the High-Yield Bond Market Chapter 6.Bond Indentures and Bond Characteristics Chapter 7.Default and Migration Probabilities of High-Yield Bonds Chapter 8.Analyzing a High-Yield Debt Issuance Chapter 9.Valuation of Callable, Floating and PIK High Yield Instruments Chapter 10.Analytical Model of Default ProbabilitiesPart III: High-Yield Bonds at the Portfolio Level Chapter 11.Managing a High-Yield Portfolio Chapter 12.Monitoring a High-Yield Portfolio Chapter 13.High Yield Index Products Chapter 14.Aggregate Market ValuationPart IV: Leveraged Loans and CDOs Chapter 15.Leveraged Loans as an Asset Class Chapter 16.The Issuers and Investors in Leveraged Loans Chapter 17.Collateralized Debt Obligations and SecuritizationPart V: Distressed Debt Chapter 18.Recovery Rates on Defaulted Bonds Chapter 19.Analyzing the Credit Risk of Distressed Securities Chapter 20.Debtor-in-Possession Financing Chapter 21.Vulture InvestingPart VI: Credit Derivative Swaps Chapter 22.Credit Derivative Swaps

Author Biography

William Maxwell teaches finance at the Cox School of Business at Southern Methodist University. He has held professorships at the University of Arizona, Texas Tech, and Georgetown and has written numerous articles for academic journals. Maxwell his coauthor of High-Yield Bonds.
Mark Shenkman is President and Chief Investment Officer of Shenkman Capital Management, one of the world's largest high-yield money management firms. He has held executive-level positions focusing on the fixed income market at First Investors Asset Management, Lehman Brothers, and Fidelity. Shenkman is co-author of High-Yield Bonds.

Table of Contents

An Overview of Leveraged Finance	p. 1
The Components of the Leveraged Finance Market	p. 9
Understanding the Role of Credit Rating Agencies	p. 21
Leveraged Loans as an Asset Class	p. 41
Collateralized Loan Obligations	p. 63
Differences between CLOs and Structured Finance CDOs	p. 97
Credit Analysis and Analyzing a High-Yield Issuance	p. 113
Bond Indentures and Bond Characteristics	p. 171
Credit Models for Assessing Firm Risk	p. 197
Performance of Credit Metrics	p. 213
Principles of Managing High-Yield Assets	p. 229
The Pitfalls of Managing High-Yield Assets	p. 251
Performance Analysis	p. 259
Trading in the High-Yield Market	p. 277
CDS: A Primer on Single Name Instruments and Strategies	p. 299
Leveraged Loan CDSs	p. 329
Debtor-in-Possession Financing	p. 355
Distressed Investing	p. 365
Glossary of Key Terms	p. 393
Notes	p. 397
Bibliography	p. 405
Index	p. 411
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