More than ever, banking competition is based on the ability to control the cost of risk and can only be managed with excellent internal rating models and very advanced risk management processes. This book is a comprehensive guide to quantitative and qualitative rating assessments with up-to-date methodologies in the international banking system.

The recent crisis in financial markets has seen a gradual erosion of risk-free asset classes. In equity markets the credit risk has reached a critical level in valuation. Here a new cost of equity method for private companies is presented based on the pricing of junior subordinated notes. Global business cases are illustrated to support this.

This book is an examination of the sovereign risk and debt limit issues facing the Eurozone (crisis/post crisis) and the need for alternative mechanisms to fund the capital investment requirements of the region.

This book explores current financing optionsfor small and medium size enterprises (SMEs), with particular insight into theEuropean market. Chaptersin the book demonstrate how and why SMEs may be forced to leave the market andposit that shadow banking and other alternative funding options are viablechannels for raising funds.