Leveraged Financial Markets: A Comprehensive Guide to Loans, Bonds, and Other High-Yield Instruments

The most complete guide available to the high-yield and distressed-debt markets

Leveraged Financial Markets opens up a world where investors take short and long positions on the riskiest forms of debt financing. Through the eyes of the players and thinkers who live in the high-yield and distressed debt markets, this timely book gives you the background and strategies you need to successfully diversify your portfolio and capture a higher return on your investment.

You’ll hit the ground running with this book’s proven models and formulas for implementing covered strategies in the real world. Leveraged Financial Markets features perspectives from the world’s top authorities on high-yield bonds, credit derivatives, and other forms of distressed debt. It’s a must-have for every investor who wants to:

•Diversify risk in a meritable asset class
•Lock in an excellent risk return profile
•Develop significant annual cash flows
From the nuts and bolts of leveraged finance to the differences between CLOs and structured finance CDOs to common pitfalls of high-yield assets—Leveraged Financial Markets helps you master one of the riskiest yet most profitable markets in finance today.

Table of Contents

Part I: Market Structure
Chapter 1. The High Yield Market
Chapter 2. The Globalization of the High-Yield Market
Chapter 3. Bond Ratings

Part II: High-Yield Bonds
Chapter 4. High-Yield Bonds as an Asset Class
Chapter 5. The Issuers and Investors in the High-Yield Bond Market
Chapter 6. Bond Indentures and Bond Characteristics
Chapter 7. Default and Migration Probabilities of High-Yield Bonds
Chapter 8. Analyzing a High-Yield Debt Issuance
Chapter 9. Valuation of Callable, Floating and PIK High Yield Instruments
Chapter 10. Analytical Model of Default Probabilities

Part III: High-Yield Bonds at the Portfolio Level
Chapter 11. Managing a High-Yield Portfolio
Chapter 12. Monitoring a High-Yield Portfolio
Chapter 13. High Yield Index Products
Chapter 14. Aggregate Market Valuation

Part IV: Leveraged Loans and CDOs
Chapter 15. Leveraged Loans as an Asset Class
Chapter 16. The Issuers and Investors in Leveraged Loans
Chapter 17. Collateralized Debt Obligations and Securitization

Part V: Distressed Debt
Chapter 18. Recovery Rates on Defaulted Bonds
Chapter 19. Analyzing the Credit Risk of Distressed Securities
Chapter 20. Debtor-in-Possession Financing
Chapter 21. Vulture Investing

Part VI: Credit Derivative Swaps
Chapter 22. Credit Derivative Swaps