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Corporate Financial Distress, Restructuring, and Bankruptcy, 4th Edition
book

Corporate Financial Distress, Restructuring, and Bankruptcy, 4th Edition

by Edward I. Altman, Edith Hotchkiss, Wei Wang
March 2019
Intermediate to advanced content levelIntermediate to advanced
368 pages
11h 58m
English
Wiley
Content preview from Corporate Financial Distress, Restructuring, and Bankruptcy, 4th Edition

CHAPTER 11Applications of Distress Prediction Models: By External Analysts

In Chapter 10, we discussed the evolution of the Z‐Score model, and other distress prediction techniques, and included a list of applications of the models. Figure 11.1 shows that list again. In the next three chapters, we revisit this applications subject, elaborating on many of suggested, or already experienced, applications, including several that were not discussed earlier. This first chapter concentrates on those applications performed by analysts who are external to the distressed debtor (left‐hand column of Figure 11.1) in order to improve their position or to exploit profitable opportunities presented by distressed firms and their securities. Chapter 12 explores in greater depth, via a case study, the unique application related to managerial efforts for formulating and implementing a turnaround strategy. And in Chapter 13, we apply our updated distress prediction model, called Z‐Metrics™, in a “bottom‐up” analysis of the default assessment of sovereign debt.

External (to the Firm) Analytics Internal (to the Firm) and Research Analytics
  • Lenders (e.g., Pricing, Basel Capital Allocation) * Bond Investors (e.g., Quality Junk Portfolio)
  • Long/Short Investment Strategy on Stocks (e.g., Baskets of Strong Balance Sheet Companies and Indexes) e.g., STOXX, Goldman, Sachs, Morgan Stanley
  • Security Analysts and Rating Agencies
  • Regulators and Government Agencies
  • Auditors (Audit Risk, Going Concern ...
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Publisher Resources

ISBN: 9781119481805Purchase book