Credit Analysis of Financial Institutions, 2nd Edition builds on the success of the first edition - the first book to look at how credit analysis of each major type of financial institution is best approached in an environment of integration, consolidation and globalisation within the financial services industry. Fully updated to take into account IFRS, Basel II, hedge fund growth, explosion in credit derivatives and market sensitivity analysis.
The book's seven sections discuss:
Banks: lending to banks, capital adequacy, liquidity, cash flow analysis, ratio analysis
Insurance companies: regulation, ALM, solvency, credit analysis, risk, ratio analysis
Investment banks: risk management, credit analysis, balance sheet, income statement, ratios
Finance companies: credit scoring, liability management, ratio analysis, risks, case study
Leasing companies: types of leases, assets, liabilities, income statement analysis, use of ratios
Investment management companies: investment policies for investment companies, balance sheet, income statement (profit and loss statement), mutual fund performance, fund credit analysis, hedge funds
Pension funds: investment policies for pension plans, best investment policies for pension funds, credit analysis of pension funds
The book provides a framework that will enable a banker or analyst to effectively compile a meaningful view of any institution