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
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.
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).
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
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
- 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.
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.
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
Click on the “Register” button to register online. There are 2 options for payment:
- PayPal (Credit Cards)
- 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
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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.
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
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