Credit and credit risk permeates every corner of the financial world. Although previously credit was only acknowledged when dealing with counterparty credit risk, high-yield debt, or credit-linked derivatives, now it affects all things, including such fundamental concepts as assessing the present value of a future cash flow. The purpose of this book is to analyze credit from the beginning—the point at which any borrowing entity (sovereign, corporate, etc.) decides to raise capital. To describe clearly the debt management activity, the book presents examples from the development banking world (multi-lateral agencies, quasi-governmental entities, Emerging Markets, shrinking pool of AAA borrowers, etc.). This book covers:
