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Credit Risk in Emerging Markets

Post on: 9 Апрель, 2015 No Comment

Margin Services

Date: Friday, 21 February 2014
Time: 09:00 AM CST
Location: NFA Conference Room in Chicago
Speaker: Mayra Rodriguez Valladares
Sponsoring Firm: The IFM

This one-day program is designed to enhance analytical skills to create qualitative and quantitative frameworks to analyze credit risk in emerging markets. Attendees will learn to analyze credit risk drivers in emerging markets; utilize market indicators (i.e. commodity prices, macro indicators, ratings, equity and debt prices) to understand the credit risk of emerging market borrowers and derivatives counterparties.

Participants will discover how to establish underwriting criteria for emerging market borrowers and how to evaluate qualitative and quantitative frameworks to differentiate between borrowers and substantiate lending decisions. Attendees also will learn how to compare and contrast the techniques used to assess the credit standing of companies in emerging markets and be able to debate advantages and disadvantages of credit risk models as applied to emerging markets.

The course will include a presentation, interactive discussions and case studies.

Module I: Overview of Risk in Emerging Markets

Define economic and country risk
Identify and analyze other risks in emerging markets

Market (interest rate, commodity, and currency risks)
Liquidity, operations, and legal risks

Evaluate corporate governance, complex ownership structures, and government stakes

Case Study

Identify the importance of each component of the credit process

Evaluate the critical importance of the identification, measurement and evaluation of risk in the credit process

Evaluate the quality of the credit process

Establish how disbursed loans and derivatives counterparties need to be monitored

Compare and contrast strategies to work out problem loans and problems with derivatives counterparties

Module II: The Credit Process

Module III: Credit Analysis

Describe the basic elements of a quality credit process

Establishing underwriting criteria

Steps to assess potential borrower’s credit worthiness

Internal financial information

Market signals

Ratings, stock price, and credit spreads

Analyzing borrower’s and counterparty’ collateral

Discern best practice credit analysis techniques when reviewing emerging market borrower financial statements

Analyze key factors in a balance sheet, income statement, and cash flow statements

Compare and contrast useful financial ratios

Evaluate the appropriateness, quality and results of the credit analysis techniques used in the credit process

Compare and contrast rating agencies’ credit analysis

Case Study

Module IV: Overview of Credit Risk Measurement

Discuss typical measurement models used by credit risk practitioners
Compare and contrast measurement models and their applicability to emerging markets

CVaR
Credit Risk Metrics
KMV

Identify advantages and risks in credit risk models as applied to emerging markets

Class Size: Registration is intentionally limited to approximately 15 participants to promote student participation and interaction.

Who Should Attend: Professionals responsible for analyzing emerging market borrowers, counterparties, and credit products.

Level: Intermediate/Expert

Credits: The IFM is recognized by Global Association of Risk Professionals (GARP) as an Approved Provider of continuing professional education (CPE) credits for FRMs and ERPs. This course is valid for 6.5 credits.

Cost: $800 early-bird ends 4 weeks prior to course date; $850 standard registration.

Complimentary continental breakfast and

refreshment breaks are provided. Lunch on own.