Our Courses

Advanced Credit Analysis

Just as loans are the most important assets in a bank’s portfolio, sound credit analysis is the key to making high-quality loans and managing credit risk. Even the best software program cannot replace the need for a solid understanding of how to analyze credit. The ability to foresee cash flow trends and ask the right questions can mean the difference between good loan credits and frequent restructurings and defaults.

Some bankers find themselves at a disadvantage in loan negotiations while those who acquire proper credit skills increase shareholder value.

To ensure that astute credit decisions are made and lending portfolios effectively managed, it is essential to be fully aware of the latest techniques in cash flow, and simulation, time series and stochastic, optimization, forecasting techniques, pricing, credit risk rating.

Knowledge Development Objectives

This practical programme is designed to help participants:

  • Appreciate the importance of the credit cycle
  • Have a better understanding of the current state of the credit markets
  • Compare and contrast investment grade issuers vs. high yield issuers
  • Gauge company performance using ratio analysis
  • Understand the relationship between qualitative and quantitative aspects of a credit analysis
  • Recognize the effects of accounting irregularities
  • Understand the importance of valuation in credit analysis
  • Become familiar with various market tools
  • Be conversant with various valuation models
  • Sharpen forecasting skills
Course Content
  • Day One

    1. Analyzing Management
    2. Bank Credit Products
    3. Credit Evaluation Strategies

    Day Two

    1. Overview of default rates and recovery rates
    2. Evaluation of the borrower/issuer
    3. Early Warning Signs
    4. Evaluation of the issue

    Day Three

    1. The Importance of Cash Flow
    2. Valuations and structuring
    3. Common cash flow valuation pitfalls
    4. Cost of Capital
    5. Risk Valuation Techniques in Credit Analysis
Who Should Attend

Risk Managers, Relationship Managers, Commercial Lenders, Commercial Loan Analysts, Commercial Credit Managers, Credit Administration Staff in the Banks or Financial Institutions.