CSAP - Credit Risk Analysis Module - Financial Training Course

CSAP - Credit Risk Analysis Module

Credit Risk Analysis is never out of style. No matter which industry or department one may work in, a solid grounding in credit risk fundamentals is required. This program provides the tools and techniques required to perform a credit analysis. The focus is on understanding the qualitative issues before performing the quantitative analysis. After an historical risk analysis is carried out, participants perform financial forecasting, which determines correct structuring. The class also explores financing alternatives including options in money and capital markets, seniority, protection and monitoring, holding company analysis, subordination, covenants and off-balance sheet items. Practice is key, so there is ample opportunity to practice the analytical techniques learned in each section.

20-Oct-2008 -- 24-Oct-2008	Chicago	USD$4675
NY Institute of Finance - Chicago	9:00am - 4:30pm	Instructional Method: Group-Live
Instructor(s): [ Henry Pullman; ]	Mon Tue Wed Thu Fri	Level: Basic
		CPE Credits: 36.0

12-Jan-2009 -- 16-Jan-2009	New York	USD$4875
NY Institute of Finance - Midtown	9:00am - 4:30pm	Instructional Method: Group-Live
Instructor(s): [ Various Instructors; ]	Mon Tue Wed Thu Fri	Level: Basic
		CPE Credits: 36.0

Entry level professionals, investment professionals, research analysts, corporate bankers, fixed income analysts, credit analysts, equity analysts, mergers & acquisitions professionals and mid level career transitions.

No advance preparation required.

Students will be able to:

Complete a business and industry risk ana
Understand the relationship between the qualitative and quantitative aspects of a credit analysis and calculate the ratios foe the selected company
Understand rating agency methodology and public ratings
Analyze the ratios in context with the business and industry analysis and draw conclusions on the historical data
Compare peer performance and complete a trend analysis for the selected company
Recognize the off-balance sheet risks and quantify these risks
Perform a cash flow analysis and associated reconciliations
Forecast the key value drivers and their impact on the company’s future performance
Analyze the existing capital structure and determine the appropriate financing alternatives for the target company
Propose structuring solutions consistent with a risk/reward strategy
Apply operational risk techniques to determine key documentation requirements
Conclude, via a written and oral presentation on the creditworthiness of the selected company including recommendations

Basic accounting, fluency in English

"Course administered by experienced and knowledgeable instructor"

"Great overview of credit markets/ how to protect your investments against losses"

"Class gives a general overview of derivatives"

"The strength of this course is that it touches on many aspects of finance"

"The instructor seems to know a lot about credit. Therefore, it was very helpful learning from first hand experience, especially in the midst of the credit crisis currently in the US"

Advanced Credit Risk Analysis

DAY ONE Overview of Credit Interaction of the market, the client and credit Understanding market, credit and operational risks The 5Ps and 5Cs of Credit Shareholder Value Added Risk/Reward and capital allocation Purpose and Payback Credit Analysis Fundamentals Corporates versus Financial Intermediaries Specialized Industries Specialized Products Sources of information Business and Industry Analysis Industry Analysis including SWOT, critical success factors and Porter framework Operation/Business analysis Business risk versus financial risk The asset conversion cycle Environmental and Regulatory risk analysis Management Analysis Early Warning Signs Credit red flags Exercise: Balance Sheet Recognition Homework: Participants will complete the business and industry analysis for the selected company Rating Agencies Role Concepts/Process Methodology/Issues Oversight Ratings	DAY TWO Ratios and Credit Statistics Advantages and Limitations of ratios Types of Ratios including: profitability, asset quality and efficiency, leverage and coverage Peer comparisons/Industry benchmarks Specialized industry ratios Seasonality Overall performance ratios: DuPont formula Exercise: Ratio Analysis Homework: Participants will complete the ratios for the selected company

DAY THREE Cash Flow Analysis Structure of the cash flow statement Sources and Uses Reconciliations including PP &E, Intangibles, Investments, Deferred Taxes, Long term debt, Minority interest and Equity Exercise: Participants will complete the cash flow for the selected company Historical Financial Analysis The Audit Review of historical patterns and industry performance Income Statement analysis Balance Sheet analysis Cash Flow analysis Exercise: Participants will work in small groups to complete the FYE analysis	DAY FOUR Off Balance Sheet Items Contingent liabilities Operating leases Debt of joint ventures and unconsolidated subsidiaries Guarantees Take-or-pay contracts and obligations under throughput and deficiency agreements Receivables that have been factored, transferred or securitized Contingent liabilities e.g. potential legal judgments or lawsuit settlements Additional Risks to Consider Financial guarantees Performance guarantees Ratings triggers Covenants Revenue recognition Unusual gains and losses Asset write-offs Swap exposures FX exposure Pension deficits Securitization Structural subordination Partnerships/SPVs Leases Environmental Product liability Exercise: Annual Reports: identifying and recognizing industry and company specific off-balance sheet risks Forecasting Building a forecast-framework and methodology Qualitative and quantitative factors Base, management, and downside cases Critical value drivers Analyzing results- assessing debt capacity, recommending financing alternatives, public versus private, quantifying results and drawing conclusions Exercise: Forecasting the critical value drivers for selected companies

DAY FIVE Structuring and Documentation Investment grade versus non-investment grade Holding company analysis Guarantees, Keepwells, LOMIs Collateral secured versus unsecured Liquidation analysis Borrowing base Covenants Subordination Exercise: Due diligence for selected case studies Presentations Participants will present the complete credit analysis for the selected company

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.

Course Category

CSAP - Credit Risk Analysis Module

DAY ONE

DAY TWO

DAY THREE

DAY FOUR

DAY FIVE