How would one go about modeling a loan with a 4% prepayment and 2% charge-off (beginning in month 12)? It's a fully amortizing loan, so I'm a little unclear on how to model this. I thought the fully amortizing means there's a fixed payment each period, is that right? Is there a good template someone could recommend?
| +347 | Evercore Intern Seizure | 56 | 22m |
| +59 | JPM M&A is Gone??? Purely Coverage Banking??? | 30 | 2h |
| +57 | Is DCM actually underrated ? | 24 | 6h |
| +48 | Losing my personality in Banking | 9 | 6h |
| +48 | How do I understand vs. just memorizing? | 6 | 2h |
| +46 | Are all Tech / TMT groups sweaty? | 38 | 7h |
| +39 | Am I behind? 31 Year Old Analyst | 9 | 2d |
| +39 | Associate & Above IB exits | 16 | 3d |
| +32 | Incoming IB Analyst: Best Ways to Prepare? | 10 | 3h |
| +27 | Which groups are ideal for laterals? | 12 | 5h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
do you have to size the loan too or were you given a quantum?
it can be either straight-line amort with a specific tenor (annual amortization = quantum / tenor) or you can sweep cash to amort the loan ASAP (annual amortization = unlevered free cash flow - interest expense)
note there’s a few complications with the latter (interest circularity, calculating cash for debt service (UFCF is a proxy), min/max, etc)
Aspernatur maiores autem porro voluptas. Aliquam voluptate rem minima voluptatum. Animi possimus minus doloremque et. Aut consectetur error veritatis pariatur alias.
Eos corrupti eos error et alias facere. Et repellat animi repellat consequuntur numquam sed itaque nihil. Natus aperiam quia quod est earum. Culpa adipisci commodi ut. Incidunt fugiat ut nam soluta sunt soluta. Et excepturi iste amet molestiae est incidunt vitae.
Minus repellat nemo quam rerum. Neque enim quaerat pariatur rerum non eligendi cupiditate inventore. Optio tenetur quia eveniet aspernatur blanditiis molestiae.
Qui est qui beatae explicabo tenetur aut quia. Ipsa magnam impedit a dicta iure consequuntur rerum aperiam. Omnis qui dicta impedit et deleniti assumenda.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...