Corporate Banking - Credit Analysis Skills
Hi All,
I apologize, I know this isn’t IB, but since there isn’t a CB forum I didn’t know where else to put this.
I’m going into my final year of my undergraduate degree and really wanting to land a Corporate Banking FT job.
I’ve read up a lot on CB here on WSO and have noticed that corporate credit analysis skills are quite important.
Is anyone aware of any good online tutorials or training pertaining to corporate credit analysis that would be relevant for Corporate Banking? Any help would be much appreciated.
As an additional note, I am a Finance major and did pass the Level 1 CFA exam so I have a decent understanding of Fixed Income.
Thanks!!
In the Breaking Into Wall Street Financing Modeling Fundamentals Course, there is one 40 minute long video that goes in depth on credit ratios and financial metrics that are relevant material to the corporate banking role.
Most commercial/corporate banking analysts go through an 11-week training program on the job where they learn all the fundamentals of corporate credit but it's good to prepare however you can ahead of time.
I would focus on understanding credit ratios, asset-based lending, cash flow lending, how covenants work, and how the deal process works in corporate credit.
Best of luck to you!
Thank you very much!
Does anyone else have any suggestions? Trying to compile as much info as I can.
Definitely review tax returns/financial statements and learn how each of these flow throughout the business. I would also recommend learning Cash Flow and EBITDA analysis, as well as figuring out how to do this in a formulated way in excel. Another option would be taking a Moody's training class as it seems a lot of corp credit roles are starting to use Moody's more often. I would also say that you should review prime rates, and stressed lending. Also, learning how to do a global cash flow analysis for all corporate guarantors/personal guarantors and businesses would be important as well. I would also recommend working on analytical writing as I have always been given a business writing sample when interviewing.
I have worked in both commercial credit analysis as well as corporate credit analysis for a F50 company.
Honestly, best thing to learn for corporate banking would be a base level understanding of loan syndications and credit agreements. If your school has a copy of the LSTA book, go through some of that. Study up on what syndicated loans are, what pro rata vs institutional is, what a term loan B is, etc. Corporate banking is a lot about understanding capital structure, but credit analysis is always a back-office credit risk function. It's good to know fundamentals, but the topics I mentioned above are far more relevant. Most important credit metric to know is debt/ebitda leverage ratio. That's what a lot of pricing will be based on.
https://www.lcdcomps.com/d/pdf/LCD%20Loan%20Primer.pdf
Read through this.
Thank you!
Where did you get your knowledge on this topic?
I’m guessing you’re in corporate banking? Would you happen to have any additional info that I could use?
You mean like retail banking? Aren't you the guy at the local branch who goes and sets up people's accounts
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