This annual publication provides an overview of the most important developments in global credit markets and the regulatory landscape. It covers theoretical and empirical research on credit ratings and credit risk, and reports on recent findings and evolutions of the Risk Management Institute's Credit Research Initiative. The ultimate objective of this publication is to advance the state of research and development in the critical area of credit risk and rating systems. With a distinctive focus on topics related to credit markets and credit risk, this publication will be useful to finance professionals, policy makers and academics with an interest in credit markets.Contents:Credit Markets: Retrospect and Prospect (David Rowe)An Improved Regulatory Framework for Credit Rating Agencies? (James Weston)Stress Testing (Noel D'Cruz and Davide Crippa)Mega-Banks Self-Insurance with Cocos: A Work in Progress (George von Furstenberg)What are the Driving Factors behind the Rise of Spreads and S of Euro-Sovereign Bonds? (Emmanuel Mamatzakis and Panos Remoundos)Measuring Distance-to-Default for Financial and Non-Financial Firms (Jin-Chuan Duan and Tao Wang)NUS-RMI Credit Research Initiative Technical report (RMI staff)A Lead-Lag Investigation of RMI PD and CRA Ratings (RMI staff)Readership: Finance professionals, policy makers and academics with an interest in credit markets.