This book is an introduction to modern credit risk methodology as well a cookbook for putting credit risk models to work. We hope that the two purposes go together well. From our own experience, analytical methods are best understood by implementing them.
We have chosen Excel as our primary tool because it is a universal and very flexible tool that offers elegant solutions to many problems. Even Excel freaks may admit that it is not their first choice for some problems. But even then, it is nonetheless great for demonstrating how to put models at work, given that implementation strategies are mostly transferable to other programming environments.
We also assume that the reader is somehow familiar with concepts from elementary statistics (e.g. probability distributions) and financial economics (e.g. discounting, options). Nevertheless, we explain basic concepts when we think that at least some readers might benefit from it. For example, we include appendices on maximum likelihood estimation or regressions.
TABLE OF CONTENT:
Chapter 01 - Estimating Credit Scores with Logit
Chapter 02 - The Structural Approach to Default Prediction and Valuation
Chapter 03 - Transition Matrices
Chapter 04 - Prediction of Default and Transition Rates
Chapter 05 - Modeling and Estimating Default Correlations with the Asset Value Approach
Chapter 06 - Measuring Credit Portfolio Risk with the Asset Value Approach
Chapter 07 - Validation of Rating Systems
Chapter 08 - Validation of Credit Portfolio Models
Chapter 09 - Risk-Neutral Default Probabilities and Credit Default Swaps
Chapter 10 - Risk Analysis of Structured Credit: CDOs and First-to-Default Swaps
Chapter 11 - Basel II and Internal Ratings
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When it comes to Web design, style guides are often too boring and predictable to capture the attention of caffeine-riddled Web developers. But not The Art & Science of Web Design; this book strategically equips readers to design sites effectively.
Jeffrey Veen, an established design guru and one of the creators of HotWired.com, has authored a carefully structured look into the undercurrents of Web design. Organized around the key development topics, the book is laden with a historical background of standards, features, and trends. Yet the topics are timeless and core to good Web engineering, so it’s space well spent. The mix of expert opinion and historical explanation creates a well-rounded reader experience.
Issues such as interface consistency are explored within the unique paradigm of the Web, with the assistance of a sidebar to explain what “above the fold” means. Performance is discussed with an unusual twist: the current constraint on Web-browsing performance is actually good since it fosters creativity and more elegant design and development. This, beyond the usual design tips, is what makes this book special. Art & Science stays at a reasonably high altitude, dwelling not on the fine details of browser compatibility but rather on the key areas designers need to be concerned about. With his years of experience and knowledge of the legacy of traditional publishing, Veen has provided a great perspective on the dicey work of Web designers.
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