Warning Signals & Lessons Learned in Corporate Credit

Course review:

The aim of this two-day corporate credit master class is to hone the analytic skills needed to appropriately identify and assess credit deterioration and determine a company's ability to improve performance or repair the existing capital structure. The focus will be on drawing upon lessons learned from the credit crisis to determine sustainable level of indebtedness, the robustness of deal structures, and what actions can be taken to limit loss to the bank. Current trends in the marketplace will be examined in order to highlight any potential risk trends.

Specifically, participants will be equipped to:

• Identify companies most susceptible to credit deterioration and the factors that will impact the likelihood of default or the need for distressed exchange of debt
• Review a company's funding structure in context of its sector and operating performance to determine whether the existing structure will effectively mitigate credit deterioration or the extent to which it has the potential to reduce lenders' recovery rates (e.g., risk of structural subordination, risk of deterioration in asset values, complications to the bankruptcy process, etc.)
• Appreciate the importance of safeguards to enable early intervention in deteriorating credits and the correlation between early intervention and ultimate recovery rates in distressed credits
• Consider the practicality of solutions designed to stabilize the business and assess alternative options available to minimize future problems / losses for investors.