Credit Risk Management - Learn the Industry

This lecture details the different for-profit and not-for-profit company structures, as well as some of the pros/cons for each.

This lecture will cover public debt ratings and how they are calculated at Moody's and S&P. I will cover the ratings scales and key descriptors.

This lecture is an introduction to D&B ratings. I will cover each of the 7 indicators provided by the service.   

This lecture is an introduction to AM Best ratings. I will cover the indicators provided by the service. 

This lecture covers the concept of market-implied credit ratings. I will discuss a Credit default Swap, or CDS, and how it can be aligned to a market-implied credit rating.

This lecture will cover the different forms of financial statements you will come across. I will discuss what a 10-K (and 10-Q) is as well as a 20-F. I will also discuss the different types of reports (such as audited, reviewed and compiled.)

This lecture teaches how to gain an overall view of a company's liquidity. Specifically, reviewing cash (and equivalents) and lines of credit.

This lecture covers profitability, specifically how to view revenues and net income from a credit perspective. I will cover the importance of trend analysis and how vital it is to review the drivers as opposed to elevator analysis.

This lecture covers types of debt and key features (such as covenants and maturity schedule)

This lecture is a high level view of the cash flow statement. I will cover how cash from operations is calculated, as well as what to look at in the financing and investing activities (such as capital expenditures and dividends)

This lecture covers some of the key calculations used in the credit risk field. Several calculations will be covered, including those for debt, profitability, cash flow.

This lecture discusses the creation of your own internally derived credit ratings. I will cover how you would assign a rating based on peer group analysis and a D&B based rating.

The lecture covers how you would go about setting up your own ratings scorecard. I review a hypothetical scorecard, diving into each component, in order to arrive at a scorecard based rating.

This lecture begins to explore the key contract terms credit risk professionals encounter. I will cover topics like Netting, Set-off and assignment.

This lecture covers concepts of events of default, remedies to resolve contract defaults and terms around contract termination.

This lecture reviews certain contract triggers which can be used to help mitigate contract risk. Certain triggers I will discuss, such as adequate assurance and a material adverse change clause, can be tools to secure a contract post execution.

This lecture cover a few of the more common methods of calculating exposure, as well as how to mitigate risk for each. I will focus on total contract exposure, percentage of completion and a 2 month calculation. 

This lecture covers 2 common ways to look at exposure in the real estate industry. I will cover the Loan-To-Value ratio as well as applying the debt service ratio to this industry

Complex: This lecture covers a several of the more complex exposure calculation methods. I will cover the components of an expected loss calculation, and a PFE calculation (Is there another, if not, change few to a couple).

This lecture will cover the concept of margining under a forward contract. I will review the main contract terms under a margining contract, as well as run through a hypothetical scenario over a number of days. You will learn the timing and movement of collateral with In-the-money and out-of-the-money exposure fluctuations.

This lecture expands on Part 1 by adding a few complex ideas. I will cover independent amounts and different collateral threshold types, then apply them to another hypothetical margining scenario.