Credit Portfolio Management

L ike its sister book, Managing Financial Risk (which deals with market
risk), this book evolved from a set of lecture notes. (My colleagues at Rutter Associates and I have been teaching classes on credit portfolio man-agement to bankers and regulators for almost four years now.) When lec-ture notes get mature enough that they start curling up on the edges, the instructor is faced with a choice—either throw them out or turn them into a book. I chose the latter. The good news about writing a book on credit portfolio management is that it is topical—credit risk is the area that has attracted the most atten-tion recently. The bad news is that the book will get out of date quickly. In the credit market, tools, techniques, and practices are changing rapidly and will continue to change for several years to come. We will try our best to keep the book current by providing updates on our website.