6.3 Credit Analysis Techniques

In this section

• 6.3.1 Qualitative Assessment
  • Management Quality in Credit Analysis
    Explore the significance of management quality in credit analysis, focusing on the impact of leadership, governance, and corporate policies on creditworthiness.
  • Industry Position in Credit Analysis: Understanding Competitive Dynamics and Risks
    Explore the critical role of industry position in credit analysis, focusing on competitive dynamics, market share, and the impact of industry trends on credit risk. Learn how to assess an issuer's industry position using frameworks like Porter's Five Forces.
  • Economic Conditions: Impact on Credit Risk and Bond Ratings
    Explore how economic conditions like GDP growth, inflation, and unemployment influence credit risk and bond ratings in fixed income securities.
• 6.3.2 Quantitative Assessment
  • Mastering Financial Ratios for Credit Analysis in Fixed Income
    Explore essential financial ratios for credit analysis in fixed income, including leverage, coverage, and liquidity ratios. Learn calculation methods, interpretation, and industry benchmarks to optimize your bond investment strategies.
  • Cash Flow Analysis in Credit Risk Assessment
    Explore the critical role of cash flow analysis in evaluating an issuer's ability to meet debt obligations. Learn about operating cash flows, free cash flow, and cash flow projections, and understand the impact of capital expenditures, working capital changes, and financing activities.
  • Debt Structure and Covenants: Understanding Key Elements in Credit Analysis
    Explore the intricacies of debt structure and covenants, including maturity schedules, interest rates, and the role of secured vs. unsecured debt in credit analysis. Learn how covenants protect investors and the implications of breaches and cross-default provisions.