Managing the Credit Risk of Residential Developers

Risk Models    |    ADC Loans   |   Credit Cycle

RAROC   |    PD, LGD & EAD    |    Stress-Testing

By: Dan Stein and Adria Huang

Our latest reference book for the distressed residential development and home building industry is now available!

It retails for $129.99 in stores but you can get an electronic copy of this book at a 30% discount at the price of $99.99. Further discounts for clients with promotional codes.

Simply order online.

Preview Excerpts and Table of Contents

Reviews
“An in-depth look into how banks should forecast and provision for losses in their construction loans … An important feature of this book is its review of how other financial institutions are managing these distressed loans and performing regulatory reporting. A guide for this sector – a pain point for many banks – is an indispensable guide to credit analysts, loan review officers and advanced practitioners in the field of credit risk.”

“The book goes beyond regulatory guidelines to provide a powerful and effective program for understanding and controlling your institution’s credit risk for residential developers. It bridges the gap between technical details and the realities of today’s market … the models and insights are supported with up-to-the-minute 2008-9 data on distressed home builders … It is a key reference book for bankers, with  step-by-step guidance on how to apply the processes and techniques for the real world of risk analysis.”

Product Description
The book opens with a discussion of the difficult questions faced by bankers regarding their CRE and construction loan exposures. Read about how other bankers defend themselves against criticisms about asset quality, provisions and capital using answers fortified by fact-based benchmarks and data-driven snippets.

The book also outlines the different types of processes, tools and models used by banks to manage the credit risk of home builders and residential developers, as well as their efficacy and effectiveness. These provide strong answers to questions quizzing whether you should budget for these, or should have implemented them earlier.

Technical issues are covered in the remaining chapters, including Probability of Default and Loss Given Default models for regulatory reporting and economic capital management. Understand what the risk managers which are reporting to you are doing, and whether they are doing their job well to support your efforts.

Keep up with the rapidly evolving credit environment, demonstrate your know-how on avoiding excessive credit risk to regulators, and learn how other banks are managing these risks. This book will point the way for you to leverage years of experience and thought.

Offering practitioners a roadmap for dealing with the credit risk of home builders, and demonstrate to regulators and senior management that the risk is under control, the book includes a discussion of technical issues:

• Credit risk models based on financial data and asset values
• Key determinants of probability of default and loss given default
• Qualitative factors pertaining to residential developers
• Credit cycle adjustments and the application of market data
  
• Economic capital, risk-adjusted return on capital and limit settings
  
• Incorporating and analyzing current data on distressed and defaulted companies

Specifications
· Electronic Document/Paperback: 128 pages

· Publication Date: May 1, 2009

· Language: English

· Shipping Weight: 0.5 pounds