Episode #267: Edward Altman, NYU, “We Had Extra Billion Greenback Bankruptcies In 2020 As Of September Of This 12 months Than Any 12 months Ever”
Visitor: Edward I. Altman is the Max L. Heine Professor of Finance, Emeritus on the Stern College of Enterprise, New York College. He’s the Director of Analysis in Credit score and Debt Markets on the NYU Salomon Middle for the Examine of Monetary Establishments. Previous to serving in his current place, Professor Altman chaired the Stern College’s MBA Program for 12 years. Dr. Altman has a world repute as an knowledgeable on company chapter, excessive yield bonds, distressed debt and credit score danger evaluation. He’s the creator of the world well-known Altman-Z-Rating mannequin for chapter prediction of firms globally.
Date Recorded: 10/27/2020
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Abstract: In episode 267, we welcome our visitor, Edward Altman, professor on the Stern College of Enterprise at NYU. In right now’s episode, we’re speaking company chapter, excessive yield bonds and credit score danger evaluation.
We discuss to Professor Altman concerning the Altman Z-Rating Mannequin, which he created in 1968 to foretell bankruptcies. He discusses the document excessive debt ranges firms had on the finish of 2019 proper earlier than COVID hit the U.S. and what he’s seen this yr with numerous billion greenback bankruptcies. He additionally touches on the bounce within the fee of zombie firms around the globe.
As we begin to wind down, Professor Altman explains why he’s bullish on prime quality junk bonds and why the happiest second of his profession was testifying in entrance of Congress in 2008 advocating chapter for GM.
All this and extra in episode 267 with NYU’s Edward Altman.
Hyperlinks from the Episode:
- 0:40 – Intro
- 1:38 – Welcome to our visitor, Edward Altman
- 5:32 – The place credit score scores stood on the time of their creation
- 8:22 – A broad overview of the mannequin
- 11:04 – How the mannequin has modified through the years
- 14:58 – Driving forces which have pushed extra firms away from AAA rankings
- 17:46 – How Covid has impacted company debt ranges
- 18:00 – His papers
- 25:52 – How Fed actions have impacted markets and what future unintended penalties might be
- 32:08 – International debt scenario
- 35:23 – Any particular international locations value keeping track of
- 37:59 – High quality junk bonds
- 41:11 – Standing of adverse yielding sovereign debt and the possibilities we see it within the US
- 45:41 – Downside with propping up vested pursuits
- 47:10 – Concepts that Professor Altman is keen on right now
- 49:15 – Most memorable funding of his profession
- 51:20 – Connecting with Ed: website, Corporate Financial Distress, Restructuring, and Bankruptcy: Analyze Leveraged Finance, Distressed Debt, and Bankruptcy
Transcript of Episode 267: