The Baldwin Piano Master Case illustrates the fortunes of a company that has fallen on difficult and has just renewed it revolving line of credit with a lender. The case follows the informal discussion and outline of a credit memo but stops short of loan pricing, inventory and liquidation analysis.
Master Case: Credit Process: Baldwin Piano
Premium Courses Derivatives Terminology Crash Course$7.99Ratio Analysis$16.69Monte Carlo Simulation - Package$18.00ICAAP – Overview & Core Concepts$59.00On the 300th anniversary of the modern Piano, Baldwin Piano is struggling to survive. It is the perfect Turnaround case. When we first looked at Baldwin’s numbers and its historical performance, we saw a dying industry, a shrinking market, cheaper imports, bad investment bets, distracted management, increased leverage and interest expense, bankers bailing out and a firm bleeding cash from every orifice with no relief in sight. …
Premium Courses Option Pricing using Binomial Trees$199.00Corporate Finance – First Course – Includes case study$17.49ICAAP – Overview & Core Concepts$59.00ALM – Crash Course – EXCEL Examples$59.00While the Credit Analysis course started the discussion on financial and operating leverage and the thinking behind the borrowing decision, the Credit Process course focuses on the lending side of the equation.
Master Class: Credit Process: Mindset
Master Class: Credit Process: Understanding the language – I
Master Class: Credit Process: Understanding the language ii
Master Class: Credit Process: Why do businesses borrow money?
Master Class: Credit Process: Lending products?
In this session we will work with the Cash Flow Statement of Office Depot and see what the numbers tell us. Office Depot is a retailer of office supplies in the US market.
Remember that the statement shows what the firm’s beginning and ending cash balances are and what activities have been performed throughout the year to result in those balances. We have taken the figures from 1997 to 1999…
Premium Courses Individual subscription$699.00Asset Liability Management (ALM) Crash Course - Package$125.00Calculating VaR – EXCEL Example$13.99Selling Derivative Products$199.00We have now seen a reasonable amount of information on Willy Whale Inc, our friendly, next-door stuffed toys manufacturers and distributor. A credit memorandum using the same information has been prepared and presented before the loan committee. It is now time to take a decision.
A credit decision is a composite of three interlinked decisions
To lend or not to lend – Accept / Reject Terms at which the bank should… Premium Courses Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates - PDF$9.99Credit Analysis - Financial Institution$25.59Portfolio VaR – EXCEL Example$59.00Heath Jarrow Merton – HJM 3 – Factor Interest Rate Model$99.00Organizations have formal and informal processes in place for getting things done. Credit culture refers to the comfort level developed within a lending institution, over the years with a number of issues.
What policies does the bank have (in writing or otherwise) with respect to… Premium Courses Monte Carlo Simulation – Commodity – Example$8.99Monte Carlo Simulation – Currency – Example$8.99ICAAP Sample Report Template & Executive Summary$79.00Setting & Linking VaR, Stop loss & PSR Limits$199.00Concept Title: Credit Risk & Credit Analysis
Financial institutions and investors make money by putting their capital at risk. The underlying idea is fairly simple – returns from this exercise will not just compensate them for bearing the risk but will also allow the original capital base to grow. Over the years some effective rules of thumbs, guidelines, benchmarks and processes have been developed and tested that allow the…
Premium Courses Monte Carlo Simulation - Package$18.00How to utilize results of a Black Derman Toy Model$14.49Monte Carlo Simulator with Historical Returns$199.00Collateral Valuation in Credit Risk Management$21.49We now understand why businesses borrow money, how they plan to repay what they have borrowed and what are some of the things a credit officer would look at in a loan applicant. The next item on our list is the products available in financial markets to meet the lending needs of a business. An understanding of customer needs and how those needs are…
Premium Courses ALM – Crash Course – EXCEL Examples$59.00Calculating Value at Risk (VaR) - Package$77.00Derivative Products - Package$15.00Interest Rate Simulation Crash Course - Package$199.00Why do businesses borrow money?
Let’s start with the need! Why do firms borrow money? If you think about it there are actually two separate questions. The first question is why does the firm need money – as in what will the money used for? The second question is why is the firm borrowing money? A healthy business should generally have a number of financing options available – why is…
Premium Courses How to construct a Black Derman Toy Model in EXCEL$29.00Option Pricing using Binomial Trees$199.00Setting Limits – EXCEL Example$19.49Forward Prices, Spot Rates & Forward Rates, Yield-to-Maturity, Forward Rate Agreements (FRA), Forward Contracts and Forward Exchange Rates - PDF$9.99
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