Portfolio management of credit assets

Author: Smithsonian
Publisher:
Publish Date: 2006-08-01
Features: Market competition is driving financial institutions to change the way they manage credit asset portfolios. The rapid growth of secondary loan transactions, credit derivatives, and loan securitization is evidence of this, and more importantly, banks and other financial institutions are abandoning the traditional "issue and hold" credit approach and embracing the investors' "portfolio approach." Market realities have changed the way credit asset portfolios are managed. This book, through numerous illustrative charts, new industry research and practical surveys, and the introduction of new tools and technologies, will help you recognize and grasp this change, enhancing your professional management skills. (This paragraph is the eye and promotional highlight of the book. Whether the author buys this book or not, this paragraph is crucial. In the future, when creating cover text, it should be concise and clearly explain where the market demand for the book lies. Avoid directly translating the original book's text for the cover. Even if translated, only retain sentences that are truly useful to the target readers. This book provides reliable advice on the challenging topic of credit asset portfolios in three aspects: (1) the credit asset portfolio management process; (2) credit asset portfolio management tools; (3) the allocation and distribution of capital. Its content widely covers relationships from managers, financial managers, and credit analysts to the relationship between portfolio managers and derivatives traders, as well as issues that financial and credit professionals must understand. The book first outlines the current credit revolution, explaining that the measurement and management of capital are key to effective portfolio management. It then discusses how the principles of Modern Portfolio Theory (MPT) can be applied to credit asset portfolios. You will also learn about the data sources and requirements for credit asset portfolio modeling. Subsequently, the book provides a detailed introduction to the three types of credit asset portfolio models currently in use: structural models, macro-factor models, and actuarial models. Once you have a basic understanding of the credit asset management process, the book further introduces the tools necessary for managing credit asset portfolios, offering insightful and valuable advice on the following issues:
● Loan sales and trading. Discussing the primary syndicate market and the secondary loan market;
● Credit derivatives market. How to price and effectively utilize them, as well as how to manage credit portfolios;
● Securitization. Providing a comprehensive explanation of debt-mortgaged bonds (CDOs) from application to arbitrage. This book can serve as a learning and teaching reference for faculty, undergraduate and graduate students, and MBA students in financial and financial disciplines across the country. Investment consulting firms can select it as a training manual for managers on portfolio-related knowledge. The book is also suitable for other professional graduate students, financial regulators, financial managers, risk managers, and all socially engaged individuals interested in portfolio management. Market competition is driving financial institutions to change the way they manage credit asset portfolios, with the rapid growth of secondary loan transactions, credit derivatives, and loan securitization as evidence. More importantly, banks and other financial institutions are abandoning the traditional "issue and hold" credit approach in favor of the investors' "portfolio approach." Market realities have reshaped the management of credit asset portfolios. Through numerous illustrative charts, new industry research and practical surveys, and the introduction of new tools and technologies, this book will help you recognize and master these changes, elevating your professional management skills. (This paragraph is the eye and promotional highlight of the book. Whether the author buys this book or not, this paragraph is crucial. In the future, when creating cover text, it should be concise and clearly highlight where the market demand for the book lies. Avoid directly translating the original book's text for the cover. Even if translated, only retain sentences that are truly useful to the target readers. This book provides reliable advice on the challenging topic of credit asset portfolios in three aspects: (1) the credit asset portfolio management process; (2) credit asset portfolio management tools; (3) the allocation and distribution of capital. Its content widely covers relationships from managers, financial managers, and credit analysts to the relationship between portfolio managers and derivatives traders, as well as issues that financial and credit professionals must understand. The book first outlines the current credit revolution, explaining that the measurement and management of capital are key to effective portfolio management. It then discusses how the principles of Modern Portfolio Theory (MPT) can be applied to credit asset portfolios. You will also learn about the data sources and requirements for credit asset portfolio modeling. Subsequently, the book provides a detailed introduction to the three types of credit asset portfolio models currently in use: structural models, macro-factor models, and actuarial models. Once you have a basic understanding of the credit asset management process, the book further introduces the tools necessary for managing credit asset portfolios, offering insightful and valuable advice on the following issues:
● Loan sales and trading. Discussing the primary syndicate market and the secondary loan market;
● Credit derivatives market. How to price and effectively utilize them, as well as how to manage credit portfolios;
● Securitization. Providing a comprehensive explanation of debt-mortgaged bonds (CDOs) from application to arbitrage. This book can serve as a learning and teaching reference for faculty, undergraduate and graduate students, and MBA students in financial and financial disciplines across the country. Investment consulting firms can select it as a training manual for managers on portfolio-related knowledge. The book is also suitable for other professional graduate students, financial regulators, financial managers, risk managers, and all socially engaged individuals interested in portfolio management.