Credit Engineering for Bankers, 2nd Edition

Book description

More efficient credit portfolio engineering can increase the decision-making power of bankers and boost the market value of their banks. By implementing robust risk management procedures, bankers can develop comprehensive views of obligors by integrating fundamental and market data into a portfolio framework that treats all instruments similarly. Banks that can implement strategies for uncovering credit risk investments with the highest return per unit of risk can confidently build their businesses.

Through chapters on fundamental analysis and credit administration, authors Morton Glantz and Johnathan Mun teach readers how to improve their credit skills and develop logical decision-making processes. As readers acquire new abilities to calculate risks and evaluate portfolios, they learn how credit risk strategies and policies can affect and be affected by credit ratings and global exposure tracking systems. The result is a book that facilitates the discipline of market-oriented portfolio management in the face of unending changes in the financial industry.

  • Concentrates on the practical implementation of credit engineering strategies and tools
  • Demonstrates how bankers can use portfolio analytics to increase their insights about different groups of obligors
  • Investigates ways to improve a portfolio’s return on risk while minimizing probability of insolvency

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Companion Site Information
  5. Dedication
  6. Table of Contents
  7. Foreword
  8. Introduction
  9. About The Authors
  10. Chapter 1: Introduction to Loan Decision Making: The PRISM Model
  11. Chapter 2: International Financial Reporting Standards
  12. Chapter 3: Multivariate Ratio Analysis
  13. Chapter 4: Credit Analysis of Seasonal Businesses: An Integrated Approach
  14. Chapter 5: Asset-Based Lending
  15. Chapter 6: Cash Flow Analysis
  16. Chapter 7: A Primer on Quantitative Risk Analysis
  17. Chapter 8: Projections and Risk Assessment
  18. Chapter 9: Sustainable Growth and Credit Risk Management
  19. Chapter 10: Specialized Lending Risk Rating
  20. Chapter 11: Recognition, Diagnosis, and Response to Troubled Loans
  21. Chapter 12: Strategic Real Options Analysis: Managing Risk Through Flexibility
  22. Chapter 13: Capital Adequacy
  23. Chapter 14: Quantitative Credit and Market Risk Analysis: Analytical Techniques for Modeling Probability of Default, Loss Given Default, Economic Capital, Value at Risk, Portfolio Optimized Value at Risk, Interest Rates and Yield Curve, Delta-Gamma Hedging, Floating and Fixed Rates, Foreign Exchange Risk Hedging, Volatility, Commodity Prices, and Over-the-Counter Exotic Options
  24. Chapter 15: Portfolio Optimization and Management of Default Risk
  25. Chapter 16: Options Valuation
  26. Chapter 17: Exotic Options, Options Engineering, and Credit Risk
  27. Chapter 18: Credit and Debt Valuation
  28. Chapter 19: Building Integrated Exposure Systems
  29. Chapter 20: Building Risk-Adjusted Pricing Models
  30. Index

Product information

  • Title: Credit Engineering for Bankers, 2nd Edition
  • Author(s): Morton Glantz, Johnathan Mun
  • Release date: November 2010
  • Publisher(s): Academic Press
  • ISBN: 9780123785862