Commercial Banking – Debt Modeling – Corporate Finance Institute – Tim Vipond
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
Introduction
Constructing the Debt Model
Yearly Debt Schedules
Covenant Analysis
Monthly Operating Line Analysis
Risk Rating Model
Qualified Assessment
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