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Research Talent Training Programme: Module 1
Essentials of Credit Risk Analysis


Course Dates: 24th, 25th, 31st August & 1st September 2021 (4 Weekday Evenings, Interactive Virtual Classroom Setting)

Time:
7.00pm – 10.00pm

Price: $1200

The Research Talent Training Programme is designed to equip participants with the necessary knowledge and skill sets to evaluate companies and develop investment theses and analyses. Please click here for the programme brochure.

Overview
Credit risk refers to the probability a borrower fails to make payment on any type of debt. Credit risk analysis considers factors such as sources of cashflows, business risk and capital structure to provide an understanding of the company’s ability to repay its obligations. This module covers practical examples to illustrate key concepts of credit risk analysis and provides the foundation required for Module 2 (Equities Analysis Workshop: A Practical Approach to Modelling and Valuation).

Learning Outcomes
At the end of this module, participants will:

  • Acquire skills required to evaluate credit risk of a company
  • Identify early warning signals of deteriorating credit quality
  • Understand key common accounting techniques used by companies to inflate assets and reported revenues

Course Outline
Business model analysis*

  • Asset conversion cycle
  • How cash is generated by the firm
  • Critical success factors and risk mitigation
  • Inherent industry, business and financial risks
  • Reasons for business failure

Industry risk analysis*

  • Structure of the industry, demand and supply
  • Profitability and cost structure
  • Competition and regulatory environment
  • SWOT analysis (Strengths, Weaknesses, Opportunities and Threats)

Business performance of the company

  • Key revenue, profitability and costs drivers
  • Understanding the different performance and financial ratios

Financial statement analysis

  • Balance Sheet, Income and Cashflow Statements analysis
  • Review of key common negative accounting techniques
  • Common contingent liabilities

Cashflow and liquidity risk analysis

  • Generation and utilisation of cashflow
  • Quality and strength of operating cashflow
  • Early warning signs of cashflow crunch
  • Debt maturity profile and refinancing risk
  • Sources of liquidity for the company

Capital structure and debt servicing capability

  • Sources of funding, funding risk and sustainability
  • Interest and debt repayment evaluation
  • Debt servicing ratios

Financial risk analysis

  • Credit risk, interest rate risk, FX risk, commodity risk

Overview of interest rate and FX risk management tools

  • Interest rate swap, interest rate cap, FX forward, FX option, cross-currency interest rate swap

Equity valuation

  • Discounted cashflow valuation method
  • Other valuation methods: Price / Book Value ratio, Price / Earnings ratio, Dividend Yield, Earning Yield

*For these sessions in this module, participants are expected to do pre-reading of study materials and perform online research prior to commencement of class. Key learning points will be discussed and reviewed during the class.

Trainer’s Profile
Yew Jyu Lan, Chartered Financial Analyst (CFA) and has three Master degrees – a Master of Science (Real Estate) and Master of Social Science (Applied Economics) from the National University of Singapore (NUS) and an MBA (Finance) with distinction from New York University. She also holds a Bachelor of Science (Mathematics) from NUS and has a Certificate of Proficiency in Business Mandarin for Banking Professionals, awarded by the Singapore Chinese Chamber Institute of Business.

Jyu Lan has more than 24 years of banking experience gained at various major foreign and local banks covering:

a) Interest rate risk management for corporates;
b) Derivatives financial engineering (using interest rate, FX and commodities derivatives);
c) Corporate/real estate lending / Infrastructure project financing;
d) Asset securitization;
e) Distressed debt management / restructuring / recovery, and;
f) Asset/Liability management for banks.

IBF-FTS Funding
The Financial Training Scheme (“FTS”) provides funding for financial sector-specific training programmes which are recognized under FTS. This scheme is only eligible for company-sponsored participants who are Singapore Citizens or Singapore Permanent Residents, physically based in Singapore, and who have successfully completed a FTS programme. Financial Institutions (MAS licensed or exempt entities), involved in or supporting financial sector activities, are eligible to submit claims for company-sponsored participants.

For all FTS programmes commencing on or after 8 April 2020 to 31 December 2021, MAS will enhance course fee subsidies for locals attending accredited or recognised courses up to 90% co-funding of direct training costs, subject to existing grant caps of S$2,000 per programme.

For more information, please refer to IBF website.

Terms and Conditions

Registration
Click on the “Register” button to register online. There are 2 options for payment:

  1. PayPal (Credit Cards)
  2. Offline Payment (Bank Transfer)

You will receive an email with the subject title: “Acknowledgement of registration” upon completion of registration.

Bank account details as follows:

Bank Name: OCBC
Bank Account Name: Salmon Thrust PTE Ltd – SGX Academy
Bank Account No.: 601-249881-001

  • Please state your name and registration ID on the comment
  • Email the transaction reference ID together with the programme details to register@sgxacademy.com.
  • Bank transfer must be made within 3 business days of the registration to confirm your enrolment for the course. The slot will be released without notice if payment is not made within 3 business days.

Enrolment is contingent upon receipt by Singapore Exchange of the full payment and subject to seat availability. A confirmation email will be sent 5 business days before the course commences.

Changes
Singapore Exchange reserves the right to make changes to the time, date, syllabus, speakers, venue or cancel the course if warranted by circumstances beyond its control.

Cancellation and Transfer Policy
All seminar/course registrations must be received by SGX Academy Secretariat 10 business days (unless otherwise stated) before the seminar/course commences. Singapore Exchange reserves the right to make changes to the time, date, syllabus, speakers, and venue or cancel the course if warranted by circumstances beyond its control.

Cancellation of a registration must be made in writing at least 10 business days before the event and a refund (less platform administrative fee) will be made. No refunds will be given for cancellations received less than 10 business days.

Contact Us
For further enquiries, please email register@sgxacademy.com or call 6670-6808.
(Operating Hours: 9.00am to 5.00pm)

By providing your personal information and registering and joining the course, you agree and authorise Singapore Exchange Limited (“SGX”) and/or its affiliates (collectively with SGX, the “SGX Group Companies”) to collect and use the information you have provided, and to share such information with the SGX Group Companies and/or the SGX Group Company(ies)’s event partner(s) (each, an “event partner”) and any other third parties with which the SGX Group Companies or the event partner(s) have service arrangements in connection with the course or other ancillary purposes, including the marketing of SGX Group Companies and/or event partner’s products and services to you.

 

 

 

Event Details