Commercial Banking – Debt Modeling Information

This course covers the key components of building a debt model commonly used by commercial banks in assessing a borrower’s cash flows and performing covenant analysis. In this course, we will discuss the differences between operating finance (operating line of credit) and term lending (term loans).

We will walk through the major components of a debt model, including the yearly debt schedules, covenant analysis, monthly operating line analysis, and a quick overview of a risk rating model. By the end of this course, you should be able to construct a fully-linked debt model which entails the cash flow forecast of a borrower, its debt capacity, the impact of cash sweep, and any early warning signs of a covenant breach.

Here’s what you’ll learn

1. Introduction
2. Constructing the Debt Model
3. Yearly Debt Schedules
4. Covenant Analysis
5. Monthly Operating Line Analysis
6. Risk Rating Model
7. Qualified Assessment

Who is this course for?

This course is perfect for any aspiring credit analysts working in insurance, underwriting, rating agencies, commercial lending, corporate credit analysis, and other areas of credit evaluation. It is also a great elective course for anyone who would like to learn more about how commercial banks forecast the debt capacity and cash flows of borrowers.

About Author

Tim holds a BA from Dartmouth College and an MBA from the Sauder School of Business at the University of British Columbia.

Experience

Tim is the Chair of the Board of CFI Education. He has extensive experience as an internet entrepreneur in financial analysis and investment banking. Beginning in 2005, Tim was an active participant in the capital markets with a wide range of experience spanning investment banking, investment management, and corporate development.

More courses from the same author: Tim Vipond

Salepage: Commercial Banking – Debt Modeling – Corporate Finance Institute – Tim Vipond