An Analytical Approach to Investments, Finance and Credit
Author: Chris Droussiotis
Thiscourse and text book is designed to assist junior and senior year undergraduate students that are in the process of starting their careers in finance. It can also be a reference guide to everything you need to know about investments, finance and credit. The author demostrates his 30+ years experience in investment banking and credit analysis working for large money center banks including Bank of America Merril Lunch, CIBC World Markets and Sumitomo Mitsui Banking Corporation.
Part 1 of the book introduces the fundamental concepts of Investments and portfolio analysis including risk-and-return analysis, covariance, correlation, and efficient frontiers, as well as other performance measurements such as beta coefficient via regression analysis, R-squared, Sharpe Ratio, CAPM, Jensen’s Alpha, Treynor Measure, and M Squared.
Part 2 of the book describes in detail the primary markets including where the issuers go to raise capital such as stocks, bonds, 144As, private placements, bank loans, private loans, and other loan syndicated facilities. The book uses various case studies for raising capital including LBOs, M&A, and other capital market transactions.
Part 3 describes the secondary markets where the investor looks to invest in the equity and corporate bond exhange markets, as well as other unique markets such as the credit and alternative investments insititutional funds that includes leveraged loans, CLOs, and other structured finance products. The book also describes extensively the derivative markets including uncovered and covered option strategies, futures, forwards, swaps, swaptions, CDAs, FRAs, and other exotic derivatives.,
Part 4 that includes 4 chapters is all about company specific analysis in the areas of corporate finance, corporate valuations, and credit analysis. This section gives a comprehensive overview of understanding financial statement analysis, how to build projections and run a valuation analysis (8 methods of valuation) for all stages of company development. In the last chapter, the book describes in detail the process of credit analysis and debt capacity. The book also includes lots of case studies and gives the reader the access of various financial models in all areas of finance through the Active Learning platform.