Credit Analysis in Action: Economic and Industry Essentials

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Provider

Coursera
Pricing

Paid Course
Languages

English
Certificate

Paid Certificate Available
Duration & workload

6 hours 38 minutes
Sessions

On-Demand
Subtitles

English

Found in

Part of

Credit Analyst Academy

Overview

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This course offers a concise, practice-oriented path into advanced credit analysis and fixed-income risk management. Aimed at professionals, it pairs rigor with application across loan structuring and collateral, covenants, stress testing and scenarios, Basel III capital, high-yield/distressed debt, portfolio risk mitigation (including CDS), and ESG—using tools like collateral/recovery modeling, Excel-based scenarios, CDS pricing basics, RWA calculations, and structured risk transfer. Through expert instruction, hands-on exercises, and case studies, you’ll review loan agreements, interpret covenants, value collateral, run stress tests, assess speculative-grade debt and restructurings, and implement hedges in diversified portfolios while aligning with evolving regulations and ESG. The capstone delivers a full credit assessment and decision-ready recommendation, equipping you to structure loans, evaluate risk, meet regulatory expectations, and manage institutional exposure with confidence. This course is designed for finance professionals aiming to deepen their expertise in credit risk assessment and fixed income investing. Whether you're a financial analyst, fixed income trader, portfolio manager, or credit risk specialist at a bank or rating agency, the content is tailored to equip you with practical, industry-relevant skills. Investors looking to better understand the bond market will also benefit from its structured approach and real-world applications. To get the most out of this course, participants should have a basic understanding of financial concepts such as time value of money, interest rates, and financial statements. Familiarity with Excel and basic quantitative skills will be helpful for completing hands-on exercises. While no prior experience in credit analysis or fixed income markets is required, those with a background in finance, accounting, or investment will find the course especially rewarding. By the end of this course, participants will analyze macroeconomic and industry drivers of credit risk across cycles; evaluate specialized markets such as high-yield and distressed debt; integrate ESG factors into comprehensive assessments; and execute end-to-end credit analyses using professional, decision-ready methodologies. They will also design and interpret stress tests and scenario analyses to quantify downside risk using practical, Excel-based models. Finally, they will communicate clear, defensible recommendations to stakeholders aligned with Basel expectations and institutional risk policies.

Syllabus

Course Introduction

In this course, you’ll learn how to assess credit risk and manage fixed-income investments using advanced tools like bond pricing models, credit derivatives, and regulatory frameworks. You’ll focus on real-world applications such as yield curve analysis, CDS evaluation, collateral and covenant review, stress testing, and Basel III compliance to build strategic, risk-aware portfolios. Through expert instruction, hands-on exercises, and case studies, you’ll gain the skills to implement effective credit strategies—including ESG integration—navigate regulations, and confidently manage institutional credit exposure in dynamic markets.

Macroeconomic and Industry Factors in Credit Analysis

In this module, you’ll examine the influence of macroeconomic factors on credit risk, focusing on how variables like inflation, interest rates, and economic cycles shape credit markets. You’ll explore sector-specific vulnerabilities, global risks, and the interplay between economic conditions and default probabilities. Through case studies and hands-on analysis using real data sources, you’ll learn to evaluate how shifting macroeconomic conditions impact credit quality and risk assessment strategies.

High-Yield and Distressed Debt Investing

In this module, you’ll navigate high-yield and distressed debt markets, from pricing speculative-grade bonds to analyzing restructuring paths. You’ll compare HY vs. IG risk/return, size recovery-driven trades, and use Excel to model IRR/MOIC under varied default, timing, and recovery scenarios. A case study and a hands-on build, you’ll translate capital-structure, covenant, and liquidity insights into actionable investment theses with clear risk controls.

Assessing Collateral and Loan Structure in Credit Agreements

In this module, you’ll assess collateral and loan structures within credit agreements. You’ll compare secured vs. unsecured lending, interpret covenant packages, and apply practical collateral valuation and recovery techniques. Through short videos, doc reviews, and a hands-on exercise, you’ll identify structural weaknesses and translate findings into lender-ready recommendations.

The Role of ESG in Credit Analysis

In this module, you’ll turn ESG signals into credit-relevant insights. You’ll map environmental (transition and physical), social, and governance risks to cash flows, leverage, refinancing, and collateral—then link them to PD/LGD/EAD and pricing. A case study and a document-review exercise help you extract red flags from sustainability disclosures and rating notes, convert findings into covenants/limits, and account for data gaps and greenwashing risk.

Stress Testing and Scenario Analysis

In this module, you’ll build and interpret stress tests to gauge portfolio resilience under adverse conditions. You’ll craft scenarios, run Excel-based sensitivities, and read key metrics (PD, LGD, EAD, loss/coverage) in a regulatory context. Short videos, a hands-on model, and a quiz help you translate results into risk limits, capital plans, and action-ready recommendations—while acknowledging model limits and uncertainty.