Case Study Credit Research
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Case Study Objective
Screener
Create and implement a tool to perform detailed analysis/ monitoring of capital structures for 600+ companies across multiple sectors
Approach / Solution - Reviewed the available company filings for the last 4 quarters and credit agreements including amendments for changes in terms and covenants
- Updated operating metrics for each company and created detailed capital structure with respect to debt seniority and structural subordination - Prepared a dynamic monitor by linking market data (prices, yield, amounts outstanding, coupon, maturity, issue ratings etc) via Bloomberg and fundamental data via capital IQ - Incorporated all the latest announcement & issuance to indicate the proforma capital structure and leverage through each tranche
- Calculated credit metrics, primarily leverage, coverage and cash flow measures - Carried out liquidity analysis by analyzing maturity profile and liquidity status (comparison of short-term maturities with balance sheet cash and revolver availability)
Client Impact
Note: Green colored cells contain data pulled from Bloomberg
The screener tool is designed to generate trade ideas by comparing ratings, spreads, yields, trading levels with respect to credit risk across comparable securities and within the capital structure.
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Thank You
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