Overview

Commercial Banking – Debt Modeling Course Overview

This course covers the key components of building a debt model that is commonly used by commercial banks in assessing a borrower’s cash flows and performing covenant analysis. In this course, we will discuss the differences between operating finance (operating line of credit) and term lending (term loans). We will walk through the major components of a debt model including the yearly debt schedules, covenant analysis, monthly operating line analysis, as well as a quick overview of a risk rating model. By the end of this course, you should be able to construct a fully-linked debt model which entails the cash flow forecast of a borrower, its debt capacity, the impact of cash sweep, as well as any early warning signs of covenant breach.


Operating line of credit and term loan


Commercial Banking – Debt Modeling Learning Objectives

  • Upon completing this course, you will be able to:
  • Differentiate between operating finance (operating line of credit) and term lending (term loans)
  • Understand the benefits of using different types of credit facilities
  • Build a yearly debt schedules laying out the different types of debt drawn, the interest expense, and the principal repayments
  • Perform covenant analysis to identify early warning signs and possibilities of breach
  • Construct a monthly operating line analysis to determine the operating line drawn and amount available based on margining
  • Understand how the amount of leverage could impact a company’s risk rating


Covenant analysis


Commercial Banking – Debt Modeling is an Elective Course of CFI’s CBCA™ Program

CFI's Certified Banking & Credit Analyst (CBCA)™ Program offers skills including credit evaluation, documentation, and review procedures. For beginners to advanced users, the CBCA™ program is designed to help you become a world-class credit analyst.


Risk rating model


Who Should Take This CBCA™ Course?

This Commercial Banking – Debt Modeling course is perfect for any aspiring credit analysts working in insurance, underwriting, rating agencies, commercial lending, corporate credit analysis, and other areas of credit evaluation. It is also a great elective course for anyone who would like to learn more about how commercial banks forecast debt capacity and cash flows of the borrowers.


Debt model components

What You'll Learn

Lesson
Multimedia
Exams
Files

Commercial Banking - Debt Modeling

$197.00 Enroll Now

Approx 4.5 hrs to complete

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Path to Certification

Prerequisite Courses

4 courses from beginner to intermediate level.

01Optional

Core Courses

14 courses from beginner to intermediate level.

02Required

Elective Courses

1 course in advanced level.

03Optional

Get Certified

Submit your CBCA™ checklist and order your certificate.

CBCA Certificate 04Required

Join Our Community

Get access to the Global Corporate Finance Society.

05Optional

How the Certification Works

Certified Banking & Credit Analyst (CBCA)™ courses are offered 100% online, allowing you the flexibility to start the Certified Banking & Credit Analyst (CBCA)™ program anytime and learn when it’s most convenient for you.
Students must complete all core and elective courses (17 in total) and demonstrate mastery of the topics through successful completion of course materials, quizzes, and assessments.
Within 48 hours of program completion, your Blockchain Verified (CBCA)™ Certification will be emailed to you.

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Upgrade

From $497.00
Self-Study Certified Banking & Credit Analyst (CBCA)™
Buy Now
From $847.00
Full Immersion Certified Banking & Credit Analyst (CBCA)™
Buy Now