Half-day workshop with Professor Edward Altman
In a return visit to Macquarie University, Professor Edward Altman, (Stern School of Business, New York University) presented the following workshop:
- Title: Credit Risk and Investment Management
- Date: Wednesday 27 March 2013
- Time: 9am - 1pm
- Location: Macquarie University’s Applied Finance Centre, Level 3, 10 Spring Street, Sydney
About the workshop
Altman discussed current conditions and outlook for global corporate and sovereign credit markets and the market for distressed debt and included discussion on:
- Historic and current yield spreads and what they tell us
- Important future areas of risk
- The relation between the real economy and default rate on corporate bonds and outlook for the US economy
- Europe – will the Euro survive?
- Assessing the risk of default on sovereign debt: An original notion based on a bottom-up approach
- Why Italy is the fulcrum country in Europe
- Risk/return trade-offs on risky debt
- Analysing the risk and return of high yield, distressed and defaulted debt
- Measuring default and recovery rates
- Predicting default rates
He also reviewed Altman’s Distressed Prediction Models, covering:
- From Z-Score to Z-Metrics
- From Credit Scores to Probabilities of Defaults
This has applications for equity and bond investors, regulators, banks, corporates, firms engaged in avoiding financial distress and sovereign risk.
Edward I. Altman is the Max L. Heine Professor of Finance at the Stern School of Business, New York University. He is the Director of Research in Credit and Debt Markets at the NYU Salomon Center for the Study of Financial Institutions. He previously chaired the Stern School's MBA Program for 12 years.
He has been a visiting Professor at the Hautes Etudes Commerciales and Universite de Paris-Dauphine in France, at the Pontificia Catolica Universidade in Rio de Janeiro, Macquarie University, Australian Graduate School of Management, University of Western Australia, Luigi Bocconi University in Milan and CEMFI in Madrid.
Dr. Altman was named to the Max L. Heine endowed professorship at Stern in 1988, andhas an international reputation as an expert on corporate bankruptcy, high yield bonds, distressed debt and credit risk analysis.
He was named Laureate 1984 by the Hautes Etudes Commerciales Foundation in Paris for his accumulated works on corporate distress prediction models and procedures for firm financial rehabilitation and awarded the Graham & Dodd Scroll for 1985 by the Financial Analysts Federation for his work on Default Rates on High Yield Corporate Debt.
Professor Altman is also the Chairman of the Academic Advisory Council of the Turnaround Management Association.
He was inducted into the Fixed Income Analysts Society Hall of Fame in 2001, President of the Financial Management Association (2003) and a FMA Fellow in 2004 and was among the inaugural inductees into the Turnaround Management Association’s Hall of Fame in 2008. Prof Altman was named one of the "100 Most Influential People in Finance" by Treasury & Risk Management magazine in 2005. He also received an Honorary Doctorate from Lund University, Sweden in May 2011.
Dr. Altman's primary areas of research include bankruptcy analysis and prediction, credit and lending policies, risk management and regulation in banking, corporate finance and capital markets. He has been a consultant to several government agencies, major financial and accounting institutions and industrial companies and has lectured to executives in North America, South America, Europe, Australia-New Zealand, Asia and Africa.