Description: The recent crisis in financial markets has seen a gradual erosion of the boundaries of asset classes previously regarded as risk-free. We have gone from a world mostly free of default risk to one where credit risk is largely reflected in equity prices. Traditional valuation methods need to be integrated to take into adequate account a scenario in which expectations of growth are considerably reduced and credit risk is increased to levels previously unheard of. This book sets out a new method for estimating private companies' cost of equity based on a Fixed Income Approach. This new approach is presented throughout the book with detailed discussion of business cases focusing on the valuation of private companies in the USA, Japan, China, Russia, India and Italy. In addition to this book's theoretical insights, readers will benefit from the practical experience the authors have accumulated as risk managers within major banking groups.

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