{"product_id":"leveraged-finance-isbn-9780470503706","title":"Leveraged Finance","description":"A timely guide to today’s high-yield corporate debt markets \u003ci\u003eLeveraged Finance\u003c\/i\u003e is a comprehensive guide to the instruments and markets that finance much of corporate America. Presented in five sections, this experienced author team covers topics ranging from the basics of bonds and loans to more advanced topics such as valuing CDs, default correlations among CLOs, and hedging strategies across corporate capital structures. Additional topics covered include basic corporate credit, relative value analysis, and various trading strategies used by investors, such as hedging credit risk with the equity derivatives of a different company. Stephen Antczak, Douglas Lucas, and Frank Fabozzi present readers with real-market examples of how investors can identify investment opportunities and how to express their views on the market or specific companies through trading strategies, and examine various underlying assets including loans, corporate bonds, and much more. They also offer readers an overview of synthetic and structured products such as CDS, LCDS, CDX, LCDX, and CLOs. \u003ci\u003eLeveraged Finance\u003c\/i\u003e has the information you need to succeed in this evolving financial arena. \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eAbout the Authors xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIntroduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePart One: The Cash Market 2\u003c\/p\u003e \u003cp\u003ePart Two: The Structured Markets 3\u003c\/p\u003e \u003cp\u003ePart Three: The Synthetic Markets 4\u003c\/p\u003e \u003cp\u003ePart Four: How to Trade the Leveraged Finance Market 5\u003c\/p\u003e \u003cp\u003ePart Five: Default Correlation 6\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eThe Cash Market 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eThe High-Yield Bond Market 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Reasons Companies Are Classified as High-Yield Issuers 11\u003c\/p\u003e \u003cp\u003eSize and Growth of the Cash Market 13\u003c\/p\u003e \u003cp\u003eTypes of Structures 21\u003c\/p\u003e \u003cp\u003eA Look at Ratings 22\u003c\/p\u003e \u003cp\u003eRisk and Return for Bonds 26\u003c\/p\u003e \u003cp\u003eWhat’s Priced In? 31\u003c\/p\u003e \u003cp\u003eHow About Recoveries? 35\u003c\/p\u003e \u003cp\u003eSummary 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eLeveraged Loans 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Tale of Two Loans 39\u003c\/p\u003e \u003cp\u003eIntroduction to Leveraged Loans 42\u003c\/p\u003e \u003cp\u003eAn Overview of Loan Terms 56\u003c\/p\u003e \u003cp\u003eLoan Recovery Rates 65\u003c\/p\u003e \u003cp\u003eLoan Default Rates 73\u003c\/p\u003e \u003cp\u003eSummary 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eStructured Market 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCollateralized Loan Obligations 83\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderstanding CLOs 83\u003c\/p\u003e \u003cp\u003eElaborations and Details 92\u003c\/p\u003e \u003cp\u003eSummary 104\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCLO Returns 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefault and Recovery Scenarios 105\u003c\/p\u003e \u003cp\u003eDistressed Loan Prices, Overflowing Triple-C Buckets, and CLO Returns 119\u003c\/p\u003e \u003cp\u003eSummary 129\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCLO Portfolio Overlap 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCollateral Overlap in U.S. CLOs 134\u003c\/p\u003e \u003cp\u003eCollateral Vintage vs. Deal Vintage 142\u003c\/p\u003e \u003cp\u003eFavorite CLO Credits 142\u003c\/p\u003e \u003cp\u003eSingle-Name Risk and Tranche Protections 146\u003c\/p\u003e \u003cp\u003eExcess Overcollateralization and Excess Overcollateralization Delta 150\u003c\/p\u003e \u003cp\u003eSenior and Subordinate Excess OC Deltas 151\u003c\/p\u003e \u003cp\u003eEquity Tranches and Distressed Tranches 157\u003c\/p\u003e \u003cp\u003eSummary 157\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSynthetic Markets 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCredit Default Swaps and the Indexes 161\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Are Credit Default Swaps? 162\u003c\/p\u003e \u003cp\u003eWho Uses Protection, and for What? 168\u003c\/p\u003e \u003cp\u003eGrowth of the Market 168\u003c\/p\u003e \u003cp\u003eMarking-to-Market: SDV 01 170\u003c\/p\u003e \u003cp\u003eCredit Default Swaps Indexes 172\u003c\/p\u003e \u003cp\u003eContrasting the LCDX and CDX Indexes 177\u003c\/p\u003e \u003cp\u003eBeta: A Study of Movement 178\u003c\/p\u003e \u003cp\u003eSummary 183\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eIndex Tranches 185\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBasic Mechanics of the Tranche Market 185\u003c\/p\u003e \u003cp\u003eLoan Tranches 195\u003c\/p\u003e \u003cp\u003eSummary 199\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eHow to Trade the Leveraged Finance Market 201\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eRecessions and Returns 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBroad Market Performance 204\u003c\/p\u003e \u003cp\u003eSector Performance 207\u003c\/p\u003e \u003cp\u003ePerformance by Rating 207\u003c\/p\u003e \u003cp\u003eSummary 210\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eFramework for the Credit Analysis of Corporate Debt 211\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eApproaches to Credit Analysis 211\u003c\/p\u003e \u003cp\u003eIndustry Considerations 216\u003c\/p\u003e \u003cp\u003eFinancial Analysis 220\u003c\/p\u003e \u003cp\u003eQuantitative Models 232\u003c\/p\u003e \u003cp\u003eSummary 233\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eTrading the Basis 235\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Basic Basis Package 236\u003c\/p\u003e \u003cp\u003eConstructing the Basic Package 236\u003c\/p\u003e \u003cp\u003eMoving Away from the Basic Model 240\u003c\/p\u003e \u003cp\u003eAdding Positive Convexity 249\u003c\/p\u003e \u003cp\u003eNegative Convexity 254\u003c\/p\u003e \u003cp\u003eA More Complex Basis Package 255\u003c\/p\u003e \u003cp\u003eHedge Ratios for CLO Hedging 259\u003c\/p\u003e \u003cp\u003eSummary 260\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eHow Much Should You Get Paid to Take Risk? 263\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSingle-Name Credit Risk 263\u003c\/p\u003e \u003cp\u003eCurve Risk 267\u003c\/p\u003e \u003cp\u003eBasis Risk 269\u003c\/p\u003e \u003cp\u003eCapital Structure Risk 274\u003c\/p\u003e \u003cp\u003eSummary 281\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Five\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eDefault Correlation 283\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eDefault Correlation: The Basics 285\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefault Correlation Defined 285\u003c\/p\u003e \u003cp\u003eDefault Probability and Default Correlation 291\u003c\/p\u003e \u003cp\u003eSummary 309\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eEmpirical Default Correlations: Problems and Solutions 311\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEmpirical Results 311\u003c\/p\u003e \u003cp\u003eProblems with Historical Default Correlations 315\u003c\/p\u003e \u003cp\u003eProposed Solutions 318\u003c\/p\u003e \u003cp\u003eSummary 333\u003c\/p\u003e \u003cp\u003eIndex 335\u003c\/p\u003e \"…a resource that will be invaluable to traditional and nontraditional investors long after the market recovers.\" (\u003ci\u003eThe Investment Professional\u003c\/i\u003e)  \u003cb\u003eStephen J. Antczak, CFA\u003c\/b\u003e, is an Executive Director at UBS. Prior to joining UBS in 2001, he was a senior strategist at Merrill Lynch, and he has also worked at the Bureau of Labor Statistics as an economist. Antczak graduated from the University of Michigan with a BA in economics and an MBA in business economics and finance.  \u003cp\u003e\u003cb\u003eDouglas J. Lucas\u003c\/b\u003e has been a Group Managing Director and Director of Ratings Research at Moody's Investor Service since November 2008. Prior to that, he was head of CDO Research at UBS. Lucas has a BA magna cum laude in economics from UCLA and an MBA with Honors from the University of Chicago.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eFrank J. Fabozzi, PhD, CFA, CPA\u003c\/b\u003e, is Professor in the Practice of Finance and Becton Fellow at Yale University's School of Management, Editor of the \u003ci\u003eJournal of Portfolio Management\u003c\/i\u003e, and Associate Editor of the \u003ci\u003eJournal of Structured Finance\u003c\/i\u003e and the \u003ci\u003eJournal of Fixed Income\u003c\/i\u003e.\u003c\/p\u003e  The financial crisis that began in 2007 has prompted unprecedented volatility in asset valuations and left many wondering how to overcome its challenges. Given this extreme investment environment, investors need to make decisions that enable an appropriate risk\/return profile, and the leveraged finance market can be a very important option in this regard. Nobody understands this area better than the author team of Stephen Antczak, Douglas Lucas, and Frank Fabozzi. And now, with \u003ci\u003eLeveraged Finance\u003c\/i\u003e, they help both experienced and aspiring market professionals gain a better understanding of today's high-yield corporate debt markets.  \u003cp\u003e\u003ci\u003eLeveraged Finance\u003c\/i\u003e doesn't attempt to predict the future of markets or the ultimate outcome of this crisis. It was written to put the principles of the leveraged finance market in perspective. With this reliable resource as your guide, you'll quickly become familiar with the tools available in the leveraged finance market, how they are related to assets and investment opportunities in other markets, and how to apply these concepts in the real world.\u003c\/p\u003e \u003cp\u003eIn the past, the assets within the leveraged finance market fell into one of two categories: cash bonds or cash loans. But times have changed. With the introduction of products such as credit default swaps, synthetic indexes, and index tranches, leveraged finance investors have many tools to work with and assets to consider. This book attempts to tie the various pieces that comprise the leveraged finance market together. Its fourteen chapters are divided into five comprehensive parts:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cdiv\u003ePart One covers the cash markets, which include high-yield bonds—also known as speculative-grade or junk bonds—and leveraged loans\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003ePart Two takes a look into the structured market, focusing on one type of collateralized debt obligation—collateralized loan obligations (CLOs)\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003ePart Three examines the relatively young synthetic markets, which include credit default swaps (CDS), traded credit indexes, and index tranches\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003ePart Four reviews trading strategies that investors can employ within the leveraged finance market\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003ePart Five addresses default correlation—the phenomenon that the likelihood of one obligor defaulting on its debt is affected by whether or not another obligor has defaulted on its debts\u003c\/div\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThose with the knowledge and skill to participate in the leveraged finance space stand to benefit from the many opportunities that the current environment is creating. Filled with in-depth insights and expert advice, \u003ci\u003eLeveraged Finance\u003c\/i\u003e will help you identify and take advantage of these opportunities. \u003c\/p\u003e  \u003ci\u003eLeveraged Finance\u003c\/i\u003e is a comprehensive guide to the instruments and markets that finance much of corporate America. Presented in five sections, this reliable resource—which contains the in-depth insights of Stephen Antczak, Douglas Lucas, and Frank Fabozzi—covers topics ranging from the basics of bonds and loans to more advanced issues such as valuing credit default swaps, default correlations among collateralized loan obligations, and hedging strategies across corporate capital structures.  \u003cp\u003eAdditional topics touched upon include basic corporate credit analysis, relative value analysis, and various trading strategies used by investors, such as hedging credit risk with the equity derivatives of a different company.\u003c\/p\u003e \u003cp\u003eAlong the way, this reliable resource:\u003c\/p\u003e \u003cul\u003e \u003cli\u003e \u003cdiv\u003ePresents real-market examples of how you can identify investment opportunities and express your views on the market or specific companies through trading strategies\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003eExamines various underlying assets-loans, corporate bonds, and much more\u003c\/div\u003e \u003c\/li\u003e \u003cli\u003e \u003cdiv\u003eOffers an overview of synthetic and structured products such as CDS, LCDS, CDX, LCDX, and CLOs\u003c\/div\u003e \u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWritten in a straightforward and accessible style, \u003ci\u003eLeveraged Finance\u003c\/i\u003e has the information you need to succeed in today's dynamic financial arena.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989525938405,"sku":"NP9780470503706","price":94.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470503706.jpg?v=1761784461","url":"https:\/\/k12savings.com\/es\/products\/leveraged-finance-isbn-9780470503706","provider":"K12savings","version":"1.0","type":"link"}