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Category Archives: Credit Risk

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Probability of Default: Deutsche Bank – November 2016

The financial strength of Deutsche Bank has been the subject of main stream financial news throughout this year. Analysts have been commenting on the bank’s likelihood of default, its ability to maintain ratings, to make money and increase capital, in light of litigation woes, downsizing,

Basel III Credit Risk

Basel III credit risk standardized approach

Basel III Credit Risk – Standardized Approach. The Basel III standard issued by BIS has been up for discussion and debate.  BIS issued a first consultative paper on the revisions to the standardized approach to credit risk in December 2014. A second consultative paper was

Credit Memo. Tips for credit committee presentations

Presenting credit memo for credit committee approval The credit committee or loan committee review meeting is the final trial by fire for the loan proposal (credit memo) prepared by the loan officer and the credit analyst.  While credit risk as a function and a business

IRS PFE Exposure Estimate

Potential Future Exposure – PFE Calculations for a simple IRS

Potential Future Exposure – PFE – Calculations for an Interest Rate Swap. When it comes to counter party credit risk there are two credit exposure calculation methods that we frequently see in term sheets and internal risk reporting. Pre Settlement Risk Exposure (PSR or PSRE) and

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ODP and Staples: Ratio Analysis case study

Ratio analysis case study – Staples & Office Depot Staples is one of the largest retailers of Office Supplies in the US. In 1999, its Sales amounted to $7 billion while Net Income was $185 million, up $18 million from the previous year. The firm

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