Breaking into Banking 201: Analyzing Repayment Sources

Virtual Learning  
Wednesday, March 27, 2024 9:00 AM - 4:00 PM   iCalendar Central Standard Time

This course is a “sequel” to the 101 course and is best taken after completion of that course, though it is not a prerequisite. The 201 course includes a case study and dives deeper into topics covered in modules 4, 6, and 8 of the 101 course: analyzing a borrower’s balance sheet, income statement, collateral, and risk ratings. What to Expect

Introduction and Overview
Outline of course objectives and topics
Understanding primary and secondary repayment sources
Why banks need accurate loan data to estimate credit losses

Balance Sheet Analysis, Part 1: Analyzing Liquidity
Better definitions of assets, liabilities, and equity
Measuring liquidity: beyond formulas and ratios
Quality of current assets

Balance Sheet Analysis, Part 1: Analyzing Leverage
The difference between debt and equity
How to measure leverage
Highly leveraged lending

Income Statement Analysis, Part 1: Revenues and Profit Margins
Analyzing revenues: growth and drivers
Keys to analyzing gross margin and operating margin
Why Return on Assets (ROA) matters

Income Statement Analysis, Part 2: Coverage Ratios
Explanation of fixed charges
EBITDA as a proxy for cash flow
Measuring debt service coverage and fixed charge coverage

Collateral Analysis, Part 1: Non-current Assets
Why bankers need a backup plan
Commercial real estate as collateral
How to evaluate fixed assets

Collateral Analysis, Part 2: Trading Asset
Understanding self-liquidating collateral
How to assess the value of inventory
Analyzing a borrower’s Accounts Receivable

Collateral Analysis, Part 3: Solving the Problems
Understanding Accounts Receivable Aging reports
Borrowing base formulas and certificates
Unsecured and under-secured loans

Risk Ratings, Expected Loss, and Provision for Credit Losses
Assessing an obligor’s likelihood of repayment
Dual risk ratings and expected loss
Provision for Credit Losses and why it matters

This course is most appropriate for credit analysts, lenders, portfolio managers, and others who need skills in financial statement analysis and writing credit documents.

Fee Per Person
IBA Member $265
Nonmember $445

Virtual Learning