Sound Investing, Chapter 8 - Revenue Hoaxes
This comprehensive contributed handbook on the high-yield and distressed debt market gives institutional investors a complete overview of one of the most volatile, risky, yet potentially lucrative arenas in the financial industry. Editors Maxwell and Shenkman combine their own expertise with a host of professionals whose perspectives are featured throughout the text. About the Book The high-yield debt market (a.k.a. junk bonds) is a major sector of the financial industry, with more than $600 billion traded annually. Institutional investors, hedge fund operators, corporate financiers, and other professional money managers and traders use this market extensively due to its high returns (57.5% globally in 2009, according to a Bank of America Merrill Lynch index) in a relatively low interest rate environment. But with high return also comes high risk, which means that a complete and detailed understanding of this market is vital to successfully trade it. Leveraged Financial Markets is the perfect follow up to Maxwell's first book, High-Yield Bonds, co-authored with Theodore Barnhill. This comprehensive contributed handbook updates readers on changes in the high-yield bond market and adds in-depth coverage of several debt vehicles being leveraged in this market today, specifically collateralized debt obligation (CDOs), credit derivative swaps (CDSs), collateralized loan obligations (CLOs), and leveraged loans. Leveraged Financial Markets provides comprehensive discussions of: The globalization of the high-yield market; The risk versus return (Sharpe ratios) for high-yield debt; The issuers and investors in high-yield debt; Analytical models of distress probabilities and losses in default; Valuation of individual high-yield issuances; Building and monitoring a portfolio of high-yield bonds, and; Unique attributes of distressed debt. The authors are highly respected academics and lecture internationally on a regular basis. High-yield and distressed debt is traded globally. Key Selling Features There is a great deal of interest at the institutional level in distressed debt finance and investing. Professionals will gain much needed perspective and strategies as they enter this volatile market. Delivers the editors' expert advice, as well as perspectives from a host of experienced professionals on high-yield bonds, credit derivatives, CDOs, and other forms of distressed debt. Features the insights of, among others, Marty Fridson of Fridson Vision, Sam DeRosa of CSFB High-Yield, Peter Tufano of Harvard University, and Darrell Duffie of Stanford University. Includes models for analyzing probabilities of default and recovery Market / Audience Institutional investors, corporate financial officers, fund managers, money managers, investment bankers. Author Profiles William Maxwell (Dallas, TX) is a Professor of Finance at the Cox School of Business at Southern Methodist University. He has held professorships at the University of Arizona, Texas Tech, and Georgetown. He has written numerous articles for academic journals. He has consulted on security valuation and M&A. He was the co-author of High-Yield Bonds. Mark Shenkman (New York, NY) 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. He is co-author of High-Yield Bonds.