Concept Guide
Credit risk fundamentals
How lenders judge the risk of not being repaid: the five Cs of credit, PD, LGD and EAD, expected loss, and metrics to monitor.
9 min readRead more
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
How to read an Indian credit rating report: the rating scale, outlooks and watches, rationale, key drivers, sensitivities and group support.
8 min readRead more
Concept Guide
Altman Z-score and distress models
How the Altman Z-score combines five ratios to flag financial distress, its Z' and Z'' variants, and its limits for Indian companies.
7 min readRead more
Concept Guide
Bond pricing and yields
Why bond prices and yields move in opposite directions: pricing a bond, current yield, YTM, spreads, premiums and discounts, duration and convexity.
10 min readRead more
Concept Guide
Covenants and triggers
The conditions lenders attach to loans: financial, affirmative and negative covenants, what happens on a breach, cov-lite deals and MAC clauses.
7 min readRead more