Commercial Banking - Debt Modeling

In this course, we will delve into the important aspects of creating a debt model, a tool commercial banks use to evaluate borrowers' cash flows and conduct covenant analysis. We will explore the distinctions between term lending (term loan) and operating finance (operating credit). Our focus will be on understanding the key components of a debt modeling model, such as monthly operating line analysis, covenant analysis, and yearly debt schedules. By the end of this course, you will have the skills to develop a comprehensive debt model that incorporates the borrower's cash flow forecast, capacity assessment, impact on cash sweep, and early warning signs of covenant violation. This course is ideal for those interested in commercial banking and corporate loan financing.