Credit Investing -- Books

IB31's picture
Rank: Senior Chimp | banana points 16

Hey, does anyone have any good recommendations on books relevant to general credit investing (i.e. info on investment grade, high yield, CDS, etc.)? I was thinking of readying Moyer, even though it's focused on distressed debt -- I'm assuming I would still be able to pick up a lot on general credit investing. Anyone have any other recommendations? Thanks.

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Comments (19)

Jul 2, 2011

moyer is great. it's available online as a free ebook. MSG me know if you find other good books out there.

Jul 2, 2011

Books depend on the strategy you are learning about. Moyer is awesome. I found books on accounting and cash flow modeling very helpful.

However, if you are looking for more quantitative/cap arb type approaches, take a look at primers released by various banks. They were really helpful for me to learn about trading credit curves, equity-cds arb etc.

Jul 3, 2011
baddebt88:

However, if you are looking for more quantitative/cap arb type approaches, take a look at primers released by various banks. They were really helpful for me to learn about trading credit curves, equity-cds arb etc.

Could you give a few specific examples of these primers and what bank(s) they were from? Thanks.

Jul 3, 2011

Futura - where were you able to find the free ebook? I'm been searching for a pdf for a while and haven't had any luck. Would you be able to provide the link that you used?

Jul 3, 2011

it's not available legally anywhere as a free ebook. it's a quality book, don't steal it.

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Jul 3, 2011
frank_reynolds:

it's not available legally anywhere as a free ebook. it's a quality book, don't steal it.

http://x60.xanga.com/760d622277d35113908893/w81385...

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Jul 3, 2011

To get Moyer's book go on library.nu or ebookee.

gushansen> If you or your friend works at a buy/sell side shop they probably have access to these. Check with them. Otherwise, you can find a lot of academic papers, reports on forums etc.

Here are a few:

Primers on credit trading ranging from index to basics on derivatives etc: http://www.nuclearphynance.com/Show%20Post.aspx?Po...
Capital arbitrage: http://www.fusionam.com/_upload/editor_files/CRR_p... , http://www.cls.dk/caf/wp/wp-230.pdf , http://users.iems.northwestern.edu/~armbruster/200...

Jul 4, 2011

Thank you, that was very helpful. Do people doing capital structure arbitrage actually understand all the math nonsense from those links? Holy cow.

Jul 5, 2011

Depends on the type of arb being conducted but yes. In distressed situations where you are dealing with straight equity/bonds/cds type plays everything becomes a research project. You need to focus on the covenants, terms, understand the technicals (players, judges etc). You become a professional footnote reader and if you like the work they are very, very interesting (and profitable) footnotes.

In asset vol arb (cds to equity etc) that math is very relevant and will directly relate to your decision making.

Jul 5, 2011

I'm very interested in hearing some commentary on this as well, especially from anyone at debt focused funds or CB analyst positions.

If you missed it, this was interesting a few weeks back:
http://www.wallstreetoasis.com/blog/focus-on-the-d...

Jul 5, 2011

Fundamentals of Corporate Credit by S&P is quite good. Simplistically the focus in credit is on the downside (except distressed) vs. the upside focus of equities. Modeling/forecasting is the same, just with a focus on different metrics. Capital strucutue, legal aspect of credit is unique though.

Jul 5, 2011
Vagabond85:

Fundamentals of Corporate Credit by S&P is quite good.

I'm going to go the cheap route and ask if anyone has this or knows of a cost-effective way to access it?

Jul 5, 2011

the $30-40 to buy it is well worth it...

Best Response
Jul 5, 2011
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Jul 5, 2011

not sure if this site works; it looks kind of sketchy. @goingbustbanking

there's also a scribd link: usual disclaimer of not hosted by me, i don't own blah blah
http://www.scribd.com/doc/101008319/Fundamentals-o...

Jul 5, 2011
ChildPlease:

Save the $30-40...

http://en.bookfi.org/book/643347

This worked

Jul 5, 2011

thank you!!

Jul 5, 2011