Credit Investing -- Books

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.

 

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.

 
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.

 

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?PostIDKey=142635

Capital arbitrage: http://www.fusionam.com/_upload/editor_files/CRR_paper.pdf , http://www.cls.dk/caf/wp/wp-230.pdf , http://users.iems.northwestern.edu/~armbruster/2007msande444/2004CSAsli…

 

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.

 
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."
 

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