Advanced Corporate Credit Analysis

Description

During the financial crisis, many banks and other financial institutions lost billions of dollars due to their failure to analyse credit risks correctly. Even when financial institutions do not suffer direct financial losses due to default or market movements, they may be receiving an inadequate return for the risks involved. With leveraged instruments set to remain a standard part of corporate capital structures, in both the private and public markets, knowing how to analyse and minimize credit risk remains key to avoiding losses, maximising returns and limiting capital usage. This course introduces more advanced analytical and structuring techniques for assessing, limiting and offsetting credit risks. This course does not extend to the analysis of banks, insurance companies or structured vehicles.

What you will learn

• Advanced financial analysis, including calculating key credit ratios
• Advanced financial modelling in Excel
• Credit enhancement methods; creating cashflow ring-fencing structures; CLNs
• Parent and subsidiary rating linkage; related party risks
• Company valuation for acquisition finance and distressed situations
• Deteriorating credits, potential and actual NPLs: warning signs and strategies for minimizing loss