Public companies acquire most of their outside capital from debt financing and, more
specifically, leveraged finance—an asset class that falls somewhere between traditional
fixed income and stocks. While this type of debt financing carries significant risk to
both investors and companies, the potential returns make leveraged finance a cornerstone
of the modern financial markets.
Leveraged Financial Markets is a gathering of the most astute and informed minds in the
business.
The powerhouse editorial team of William F. Maxwell and Mark R. Shenkman have
handselected contributions from the top practitioners and thinkers working in leveraged
finance today.
The result is an authoritative guidebook that provides you with what you need to
navigate the highyield market in the integrated global economy.
Packed with a wealth of analytical models illustrating the realities of
distress probabilities and losses in default, Leveraged Financial Markets gives you all
the insight and strategies you need to:
- Use the Sharpe ratio to measure the return versus risk for high-yield debt
- Develop and oversee a portfolio of high-yield bonds
- Value individual high-yield issuances
It also updates you on changes in the high-yield bond market and features in-depth
coverage of numerous debt vehicles leveraged in the market today, including collateralized
debt obligations (CDOs), credit derivative swaps (CDSs), collateralized loan obligations
(CLOs), and leveraged loans.
Leveraged Financial Markets is your blueprint to becoming a virtuoso of this resilient
and popular asset class.
Table of Contents
Chapter 1 An Overview of Leveraged Finance William F. Maxwell 1
Chapter 2 The Components of the Leveraged Finance Market William F.
Maxwell 9
Chapter 3 Understanding the Role of Credit Rating Agencies William F.
Maxwell Philip Delbridge 21
Chapter 4 Leveraged Loans as an Asset Class Daniel Toscano 41
Chapter 5 Collateralized Loan Obligations Frederic R. Bernhard, CFA (SCM)
John E. Kim (DB) Jonathan A. Savas (SCM) 63
Chapter 6 Differences between CLOs and Structured Finance CDOs Jonathan
Blau 97
Chapter 7 Credit Analysis and Analyzing a High-Yield Issuance Amy Levine,
CFA Nicholas Sarchese, CFA 113
Chapter 8 Bond Indentures and Bond Characteristics William J. Whelan, III
171
Chapter 9 Credit Models for Assessing Firm Risk William F. Maxwell Philip
Delbridge 197
Chapter 10 Performance of Credit Metrics William F. Maxwell Philip
Delbridge 213
Chapter 11 Principles of Managing High-Yield Assets Mark R. Shenkman 229
Chapter 12 The Pitfalls of Managing High-Yield Assets Mark R. Shenkman
251
Chapter 13 Performance Analysis Frederic R. Bernhard, CFA (SCM) 259
Chapter 14 Trading in the High-Yield Market Neil Yaris Jason Hodes 277
Chapter 15 CDS: A Primer on Single Name Instruments and Strategies Sivan
Mahadevan Morgan Stanley Peter Polansky Morgan Stanley 299
Chapter 16 Leveraged Loan CDSs Vishwanath Tirupattu Sivan Mahadevan Peter
Polansky Morgan Stanley 329
Chapter 17 Debtor-in-Possession Financing William F. Maxwell Philip
Delbridge 355
Chapter 18 Distressed Investing David J. Breazzano 365
Glossary of Key Terms 393
Notes 397
Bibliography 405
Index 411
416 pages, Hardcover