Machine derived contents note: Introduction -- 1. The Objectives of the Credit Risk Process -- 2. The Asian Crisis: Lessons for Maximizing Risk-adjusted Shareholder Value -- 3. The Evolution of Credit Modeling Techniques -- 4. Credit Risk Models: The Impact of Macro Factors on the Risk of Default -- 5. Internal Ratings and Approaches to Testing Credit Models -- 6. Tests of Credit Models using Historical Default Data -- 7. Market Data Tests of Credit Models: Lessons from Enron and Other Case Studies -- 8. Out of Sample Testing of Credit Models -- 9. Implications of the Tests for the Basel Accords and Management of Financial Institutions -- 10. Measuring Safety and Soundness and Capital Allocation Using the Merton and Reduced Form Models -- 11. Impact of Collateral on Valuation Models -- 12. Pricing and Valuing Revolving Credit and Other Loan Agreements -- 13. Credit Derivatives and Collateralized Debt Obligations -- 14. Future Developments in Credit Modeling -- Index