Credit Investing -- Books

Rank: Senior Chimp | 17

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.

Comments (19)

 
7/2/11

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

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7/2/11

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.

 
7/3/11
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.

 
7/3/11

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?

 
7/3/11

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

 
7/3/11
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...

Valor is of no service, chance rules all, and the bravest often fall by the hands of cowards. - Tacitus

Dr. Nick Riviera: Hey, don't worry. You don't have to make up stories here. Save that for court!

 
7/3/11

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...

 
7/4/11

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

 
7/5/11

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.

 
 
7/5/11

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...

"We're not lawyers, we're investment bankers. We call you for the paperwork. We didn't go to Harvard, we went to Wharton, and we saw you coming a mile away."

 
7/5/11

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.

 
7/5/11
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?

"We're not lawyers, we're investment bankers. We call you for the paperwork. We didn't go to Harvard, we went to Wharton, and we saw you coming a mile away."

 
7/5/11

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

 
7/5/11

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...

 
7/5/11
ChildPlease:

Save the $30-40...

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

This worked

"We're not lawyers, we're investment bankers. We call you for the paperwork. We didn't go to Harvard, we went to Wharton, and we saw you coming a mile away."

 
7/5/11
 
7/5/11

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