The Credit Investor's Handbook: Leveraged Loans, High Yield Bonds, and Distressed Debt (Wiley Finance)

A must read for anyone interested in credit - great case studies, clearly written and thorough. Content is relatable to all parts of credit (e.g IG, private credit etc)

As someone with over 10 years of experience in private equity, leverage finance, and M&A, I've explored numerous resources on financial analysis and investing. This book stands out as one of the best I've encountered for several reasons: 1. Its structured approach to business and credit analysis is unparalleled, providing clear, step-by-step guidance that is invaluable for professionals in the field, 2. The book strikes an optimal balance between being richly informative and concise. Every word serves a purpose, making it an efficient and effective resource for busy professionals. 3. The inclusion of real-life examples further enhances the book's value, helping readers to apply theoretical concepts to practical situations, 4. It provides the most recent market information and best practice insights. Overall, I highly recommend this book to anyone looking to deepen their understanding of financial analysis and investing.

Very clear framework of credit analysis

A very practical credit book!

I am a market maker early in my career and this book is quickly becoming the go to for credit analysis in the market. The insights and step by step approach to credit analysis outlined in this book has enabled me to gain a far deeper understanding of the company’s debt I trade, and I don’t have a finance degree.

The ideal guide to distressed debt and credit investing for anyone in finance - a genuinely practical book with step-by-step real-life applications.

As an avid reader and credit analyst, I have had the opportunity to delve into various works by esteemed authors such as Howard Marks, Ray Dalio, Benjamin Graham, and Stephen Moyer. While these books provided me with a solid theoretical foundation and simplified conceptual understanding of the market, I found myself searching for a resource that would bridge the gap between theory and practical application. This book surpassed my expectations by offering not only comprehensive insights into the intricacies of credit investing but also a practical framework for making informed investment decisions. As a credit analyst, covering both syndicated loans and private credit strategies, I often encountered challenges in understanding how top investors evaluate companies and mitigate risks effectively. Despite being exposed to numerous committees and discussions, I felt there was a missing piece in my understanding of the decision-making process. Upon reading the book, I experienced a profound shift in perspective. Your emphasis on pragmatism, emotional detachment, probabilistic thinking, and the importance of mitigating factors resonated deeply with me. I found myself connecting the dots faster and gaining a better understanding of my own biases and decision-making processes. The insights have not only enhanced my credit skills but have also empowered me to approach investments with a more nuanced and informed perspective.

The Credit Investor's Handbook is the first book to provide a clear methodology of disciplined credit analysis for market participants. The book is exceptionally well-written, combining the basic concepts, a complex work-along case-study and a practical real-world framework in an easy to comprehend style. Like any great teacher who profoundly understands his subject, Michael makes the complex simple with passion and humour. The insights provided by someone at one of the pre-eminent credit investment firms in the world have also improved my own organisation and methodology and I cannot praise the book highly enough. For anyone seeking to develop their career in credit analysis or build an understanding of unfamiliar market segments the book is required reading.

I found the Credit Investor’s Handbook to be an enriching experience on multiple fronts: the book traces back the authors career path, highlighting serendipitous moments that propelled his career success, and further delves deeper into the practicalities of credit analysis, citing several practical examples, insightful sample credit memos, and a comprehensive step-by-step guide to analysing credit investment opportunities. The reader is also invited to actively analyse credit investment case studies, applying the lessons learnt from each chapters. The Credit Investor’s Handbook has greatly enhanced my understanding and I regard it as one of the most comprehensive and practical investment text books I have read. Michael Gatto's 7-step process, which he carefully explains in his book, has become my primary tool for assessing credit investment opportunities. I've frequently referred back to it to reinforce my understanding and have applied the acquired knowledge in real investment cases. As a first-year analyst, the book has offered me valuable insights into the nuances of credit and investment analysis, which I believe will be appreciated by my senior colleagues. I've incorporated the principles learned into my daily work, making the book an important resource for the enhancement of my financial analysis skills. To this end, I wholeheartedly recommend the Credit Investor’s Handbook to fellow analysts seeking to elevate their financial analysis proficiency. It not only provides practical knowledge but also serves as a reliable guide for navigating the complexities of credit and investment analysis."

The essential book for anyone involved in credit markets or who wants to work with it

I read The Credit Investor’s Handbook this past spring, and it turned out to be one of the most practical and insightful resources I’ve come across. Michael Gatto does an excellent job of distilling complex credit investing concepts into a well-structured book full of clear frameworks, anecdotes, and resources that make the material approachable for students and professionals alike. What stood out most for me was the seven-step credit analysis framework. As a rookie intern, it gave me a systematic and repeatable process for thinking through different types of debt, which made credit analysis far less intimidating. It provided a foundation I could rely on when approaching new situations, and it really sharpened my understanding of how to break down risks and key drivers across credits. Over the summer, I worked on both a leveraged buyout and a debt restructuring alongside creditors, and I kept finding myself returning to lessons from the book. The leveraged buyout helped me appreciate the capital structure dynamics Mr. Gatto lays out, while the restructuring made me realise just how useful his chapters on distressed situations really are. I can honestly say this book made me a stronger intern and left me better prepared for a career in finance. For that, I’m genuinely grateful, and I highly recommend it to anyone serious about building a foundation in this field. — H.C.

I have read many financial books and this book stands out for its depth, quality and practicality. I search for books that aren’t just filled with theory and this is seriously an exceptional book for all aspiring credit investors. Well done

The book provides practical insights into the nitty gritty of credit investing. It equips the reader with a structure and guide to analyze any credit opportunity, explaining the key concepts in a simplistic and systematic manner. Additionally, it touches upon the complex topics of distressed investing / insolvency in a lucid manner. Also, this provides a solid foundation for undertaking fundamental analysis on corporate/stocks and equips one in any role which requires the same, i.e., lending, investing, credit rating, to name a few. The key concept explained is universal and the book could be equally relevant for any geographical market. Thanks a lot for authoring this book. Excellent