Credit Engineering for Bankers

A Practical Guide for Bank Lending

By

  • Morton Glantz, Lecturer in Finance & Business Economics, Fordham Graduate School of Business, New York, NY, USA
  • Johnathan Mun, Real Options Valuation, Inc.

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.

View full description

Audience

Professionals and students worldwide working in or studying financial institutions, especially lending institutions

 

Book information

  • Published: October 2010
  • Imprint: ACADEMIC PRESS
  • ISBN: 978-0-12-378585-5


Table of Contents

PART ONE: NEW APPROACHES TO FUNDAMENTAL ANALYSIS

  1. The Credit Analysis and the Subprime Mortgage Crisis
  2. Introduction to Bank Risk Management
  3. International Financial Reporting Standards
  4. Multivariate Ratio and Cash Flow Analysis: A Banker’s Guide
  5. Credit Analysis of Seasonal Businesses: an Integrated Approach
  6. Asset Based Lending
  7. Cash Flow Analysis: a Banker’s Guide
  8. A Banker’s Primer on Quantitative and Decision Analysis
  9. Projections and Risk Assessment
  10. The Sustainable Growth and Credit Risk Management
  11. Specialized Lending Exposures
  12. Recognition and Diagnosis of Troubled Loans
  13. PART TWO: CREDIT ADMINISTRATION

  14. Risk Governance
  15. Bank Failure, Capital Adequacy, Regulatory Capital Ratios, and Loan Loss Provisioning
  16. Quantitative Credit and Market Risk Analysis
  17. Portfolio Optimization and Management of Default Risk
  18. Exotic Options, Option Engineering, and Credit Risk
  19. An Introduction to Credit Derivatives
  20. Loan Pricing
  21. Global Exposure Tracking Systems
  22. Corporate Risk Rating: Design and Application