Concept Guide
Credit Risk Fundamentals
Credit risk is the risk that a borrower will fail to make promised payments on time.
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Credit Analysis
Default risk, rating reports, distress models, bonds, and covenants.
5 guides. Read in order, or jump to what you need.
Concept Guide
Reading CRISIL, ICRA, Moody's Reports
Credit rating agencies distil complex credit risk analysis into a simple alphabetical grade.
8 min readRead more
Concept Guide
Altman Z-Score and Distress Models
In 1968, Edward Altman of New York University combined five financial ratios into a single score that predicted corporate bankruptcy with reasonable accuracy.
7 min readRead more
Concept Guide
Bond Pricing and Yields
A bond is a loan in tradeable form. The borrower (issuer) promises to pay fixed interest (coupon) periodically and return the principal (face value) at maturity.
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Concept Guide
Covenants and Triggers
When a lender extends a large loan, they don't just hand over the money and hope for the best.
7 min readRead more