Loan Stress Testing for the Credit Analyst

Loan Stress Testing for the Credit Analyst
Loan Stress Testing for the Credit Analyst

Credit analysts are charged with identifying, measuring and monitoring credit risk in any given transaction. An analyst must understand the borrower’s sustainable repayment ability, including both primary and secondary repayment sources. Repayment ability in a “normal” or positive market condition can be relatively easy to determine and used as a basis for the loan decision and risk rating. However, market conditions are not always favorable and adverse conditions can arise relatively quickly (as in 2020).

When underwriting, credit analysts should apply factors which reflect the impact of an adverse market on a borrower’s primary and secondary repayment sources. This presentation provides insight for credit professionals regarding transaction-level stress testing, including impact to operating income, guarantor support and collateral. It also includes considerations for both commercial non-real estate and commercial real estate loans.

View Series Brochure »

Once online registration closes, please call CBAI at 800/736-2224 to register for this event.
When
5/6/2021
Where
Webinar

Sign In