Collateral Valuation – Learning Roadmap

Stress testing, forced sale value modeling and credit risk mitigations connect collateral valuation to ICAAP Analysis and modeling. Without the incorporation of a sound collateral management, tracking and valuation model, there is a reasonable chance that the ICAAP numbers are completely disconnected from reality. The estimation of collateral value is an important part of the process of quantifying Credit Risk. The topics covered in the Collateral Valuation in Credit Risk Management Course include:

  • Definition and Types of Collateral
  • Desirable characteristics of collateral and a number of performance measures for evaluating its effectiveness.
  • Role of collateral in the financial intermediation process
  • Impediments and restrictions due to insufficient collateral or when the laws pertaining to collateral are un-reformed or ineffective.
  • Importance of collateral valuation to credit risk management
  • General principals of valuing collateral
  • Specific methodologies for valuing real estate (sales comparison approach, income capitalization approach and cost approach).
  • Creation, perfection, enforcement and termination of Security Interest
  • Elements of Collateral Management

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PDF & EXCELOnline Courses
  1. ICAAP – Overview & Core Concepts
  2. ICAAP Sample Report Template & Executive Summary
  3. Basel III – Liquidity Framework
  4. How to construct a Black Derman Toy Model in EXCEL
  5. How to utilize results of a Black Derman Toy Model
  6. Interest Rate Simulation Crash Course
  7. Collateral Valuation in Credit Risk Management
  8. ICAAP – Credit EXCEL Example
  9. Calibration of CIR Model – EXCEL Example
  10. Black Derman Toy Model Construction – EXCEL Example
  11. How to utilize results of a Black Derman Toy Model – EXCEL Example
  12. Heath Jarrow Merton – HJM 3 – Factor Interest Rate Model
  13. Principal Component Analysis – PCA – US Treasury Yield Rates