Lessons from the Father of the Altman Z-Score.
Geoff Castle interviews Edward Altman, Professor Emeritus of Finance at NYU’s Stern School of Business. They discuss Professor Altman’s background in distressed credit, the Altman Z-Score, Professor Altman’s recent paper which assesses default and bankruptcy rates and conditions before and after COVID.
[01:30]
The conversation kicks off with Geoff introducing the Altman Z-Score, his own experience in using it, and he ask Professor Altman about how he came up with the model and the initial reaction to its publication.
[15:20]
Professor Altman discusses rating agencies and how his relationships with them has changed over the years.
[18:08]
Geoff asks Professor Altman to explain his research in assembling databases and indices on bankrupt securities.
[21:09]
Professor Altman shares a potential “sweet spot”, a “great strategy” called quality high yield.
[24:39]
Geoff turns to present day and asks Professor Altman about distressed debt, and his recently published paper with key messages on default vs bankruptcy rates before and during the COVID-19 pandemic.
[29:56]
Geoff asks Professor Altman to discuss BBB’s and their “spectacular” performance coming out of the lows of March and the role of the Fed “in propping up that market”.
[37:34]
Geoff closes the podcast by asking Professor Altman what he is currently reading.
