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Assessing Credit Risk of Commodity Traders provides a structured approach to identifying and analyzing credit risk in a practical and efficient manner.
This course first introduces and examines the framework and tools necessary to undertake a critical analysis of credit risk, and then explores the specific methods and measures used to evaluate commodity traders. It also addresses group and debt structure analysis, with an emphasis on how a debt instrument’s terms and conditions can be used to mitigate risks. The course includes a combination of short presentations, discussions, exercises, and case studies to enrich the learning experience.
- Identify the different sources of repayment for corporate loans to commodity traders
- Use collateral to establish a senior position in the capital structure
- Consider macroeconomic and sector factors as part of the risk assessment
- Understand why unique measures are used when lending to commodity traders
- Evaluate the operating risks associated with a commodity trader’s including management, access to capital, and quality of earnings
- Perform cash flow analysis and identify early warning signals in the operating results
- Differentiate between liquidity and solvency and identify their benefits and limitations in the funding structure
- Mitigate risks in debt instruments by properly structuring terms and conditions
This course is recommended for credit professionals who do business with commodity traders, including:
- Credit analysts and underwriters
- Investment and commercial bankers
- Relationship managers