Tonight we discuss Debt Risk Concepts such as the Recovery Rate, Probability of Default, Loss Given Default, and Where to Find Certain Items on a Company Balance Sheet, Income Statement and Cash Flow Statement.

For anyone thinking of investing in corporate bonds these concepts are vital to the valuation. 

You must be able to assess risk of default and the loss given default in order to determine what the value of the bond is, and make sure that you're not overpaying for the risk you are assuming.