Edward I Altman
ABSTRACT
We are experiencing dynamic changes in the interest and concern with
credit risk management despite historically low default rates and losses
in the loan and corporate bond markets. The reasons are that lending institutions
are increasingly comfortable with transacting their assets in counterparty
arrangements whereby credit risk exposed is shifted. This motivation has
helped to stimulate the congruence of several important ingredients for
the sophisticated treatment of corporate credit evaluation and management
including stand-alone valuation techniques, portfolio management approaches,
comprehensive and reliable relevant data bases and the growth in credit
derivative and other types of credit insurance structures. We expect these
dynamic forces to continue over the next several years.
Subject: Banking, Corporate Finance/Bankruptcy, Investment/Fixed Income (Theoretical)
Altman: (212) 998-0709 ealtman@stern.nyu.edu
http://www.stern.nyu.edu/~ealtman/
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