This paper uses a new data set of daily secondary market prices of loans to analyze the specialness of banks as monitors. Consistent with a monitoring advantage of loans over bonds, we find the secondary loan market to be informationally more efficient than the secondary bond market prior to a...

This report presents results and discussion of the investment performance of those bonds and bank loans that have defaulted on their scheduled payments to creditors and continue trading in the public market while the issuing firm attempts a financial reorganization. Monthly total return measures...

We are experiencing dynamic changes in the interest and concern with credit risk management despite historically low default rates and losses in the loan and corporate bond markets. The reasons are that lending institutions are increasingly comfortable with transacting their assets in...

When Jim La Fleur took the helm at GTI, it was a company hovering on the edge of bankruptcy. By using the Altman Bankruptcy Predictor Model in an active way to set strategy, La Fleur was able to return the company to a sound balance sheet. This is a case report of a marriage of an academically...

The number of business failures in this country is growing at an alarming rate. While many experts have looked at the specific reasons why particular companies fail, few have examined the general trends and macroeconomic conditions that affect business failures. The author has, and has come to...

Can the Manville Corporation and International Harvester stave off bankruptcy? Both have low Z‐scores in the bankruptcy predictor model, demonstrating danger for Manville, and little chance of survival in its present form for Harvester unless it receives government assistance.