Corporate Credit Analysis
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$70 trillion. This is the amount of Corporate credit outstanding reported by the Bank of International Settlements at the end of 2018 globally.
Now, think of it. Banks, pension funds and mutual funds invest your savings in that debt. Before each loan or investment, a credit analyst, a portfolio or risk manager must make a decision. The right decision? It protects your savings and pensions. But it also supports employment and safeguards the environment as firms invest and entrepreneurs innovate responsibly. The wrong decision? Well… you see the picture.
This is the reason why all credit professionals must apply a tested, consistent analytical framework to make the right decision. This introductory Corporate Credit Analysis course offers just that.
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SwissThink presents a step-by-step framework allowing you to analyze most general corporate credit situations. It is anchored in the analytical approach of major rating agencies and further developed by Blaise Ganguin in his book with John J. Bilardello, “Fundamentals of Corporate credit analysis”.
Specifically, you will learn to:
Identify the key determinants of default risk
Benchmark the position of a borrower relative to its sector peers
Assess the quality of its cash flows and financial commitments
Evaluate the environmental, social and governance risks
Calculate the key sources and uses of liquidity
Recognize direct and indirect influences from a parent or other external parties on credit quality
Make an overall assessment on an internal credit scoring scale
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The course is targeted to junior / onboarding credit professionals, including:
Corporate bankers, Corporate lending officers, Loan officers
Bank relationship managers, Commercial bankers
Credit risk managers
Fixed income research analysts
Investors
Investment bank analysts
Treasury professional
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We adjust to your needs. The “sweet spot” is 4 days, providing enough time for all topics and practice team through case studies and credit committees. We can condense or extend the program, but we always dedicate time for practice as it remains the best way to learn. Class sizes are limited to 20 analysts.
Below is an illustration for a 4-day program.
Pre-course: Online introduction to credit risk
The 5 modules and the short test require 4 – 6 hours of work depending on participants’ familiarity with the topic. The 5 modules include:
Dimensions of credit risk
Measurements of credit risk
Cycles, bubbles and crises
Funding sources and the capital structure
Credit rating agencies and credit ratings
In the classroom
Day 1
9:00 - 10:00
General introduction:
Get to know you;
Credit analysis, scales and general analytical framework for Corporates
10:00 - 12:30
Country risk, country risk activity + Break
12:30 - 1:30
Lunch
1:30 - 5:00
Sector and business risk, activity + Break
5:00 - 5:30
Wrap up DAY 1; setting up activity for DAY 2
Day 2
9:00 - 10:30
Credit committee – Business risk + Break
10:30 - 12:30
Funding sources and capital structure + activities
12:30 - 1:30
Lunch
1:30 - 5:00
Financial and Liquidity risk, cash flow forecasting, activity + Break
5:00 - 5:30
Wrap up DAY 2; setting up activity for DAY 3
Day 3
9:00 - 10:30
Credit committee – cash flow forecasting + Break
10:30 - 12:30
Risk appetite: strategy, environmental, social and governance risks
12:30 - 1:30
Lunch
1:30 - 5:00
External influence: guarantees, parent / subsidiary, government influence
5:00 - 5:30
Wrap up DAY 3; setting up activity for DAY 4
Day 4
9:00 - 10:30
Credit committee – Either ESG or External influence + Break
10:30 - 12:30
High yield and LBO structures, covenants + activity
12:30 - 1:30
Lunch
1:30 - 4:00
Recovery analysis and insolvency regimes + activity
4:00 - 5:00
Course Wrap up