Advanced Credit Risk Analysis and Management 1st Edition

A very interesting and informative book on corporate credit analysis, which stresses the importance of a comprehensive borrower analysis (external and internal factors, financial and descriptive facts, etc.) for a balanced and realistic judgment of the borrower's creditworthiness. Praiseworthy is i.a. the clear writing style and combination of theory with examples. I also liked the chapter on working capital management, however, in order to avoid potential misunderstanding of the notion of net working capital, which is used by finance people to denote different concepts, two different terms could be used like e.g. working capital needs or net working assets on the one hand and net working capital (as long term financing source of working capital needs) on the other hand. I wished a more in-depth discussion of the proper category of cash flow to be used as cash flow available for debt service (before or after capex, before or after working capital changes, and for 2 cases: when we have only historical financials and try to extract from them a CF that can be deemed "sustainable", i.e. likely to be repeated in similar amount in the future years, and when we have financial projections). All in all I find it a sound and recommendable book on credit analysis both for novice analysts (despite the word "advanced" in the title - given the clear language and explanations) and for seasoned bankers to refresh and enrich their knowledge (given the good quality of the topic treatment).

“I have gone through the book and can confidently say that the book is highly useful for banking professionals and to anyone who want to know more about credit risk. The book discusses formulation of effective early warning indicators and covers the impact of business cycles, industry risks, entity level risks and provides best in the class financial risk analysis. The book explains how to make credit risk judgement and discusses about risk grades, PD, LGD and EAD. The book covers credit risks in project finance and working capital situations and critically evaluates Basel Accords and links Merton Model to the mainstream credit risk analysis. It also delves in credit portfolio risks and shows how credit contributed to 2008 Global Crisis. Each chapter is presented well with good illustrations. There are thought provoking questions at the end of each chapter as well as detailed case studies.”

This is one resources that every banker and credit analyst should have in their personal bookshelf. It is well written, and quiet insightful on various aspects of credit analysis. The author has demonstrated in depth knowledge and application of credit risk and key considerations impacting risk management. I strongly recommend it.

good book to read to enhance credit risk knowledge. the book is written with easy and simple language.

Awesome book!, I have had the opportunity to refresh my knowledge in Credit Risk. Highly recommended!

Really good book, however I noticed a few typos all throughout the text and the Free Cash Flow formulas are incorrect (CFO - Interest - Tax - CAPEX) in the Financial Analysis chapter. FCF can be derived a number of ways, the formula illustrated in this book seems to forget that in order to arrive at CFO you would have had to deduct interest and tax already.

Super slow shipping. Book is illegal version from India, not for sale in USA!!!!

I am a MBA Student and I found this book very simple and helped me understand many things.Very informative for students like me.