Credit Analysis:

This course provides the theoretical foundation for applied credit analysis. This structural framework is useful for actual implementation as well as to help ensure that pure mathematical models and static procedures don't result in credit granting disasters. The textbook used is Scientific Investment Analysis by Austin Murphy (5th Edition published by SIA in 2008) and Supplement for Scientific Investment Analysis by Austin Murphy (published by SIA in 2008 along with accompanying software.

Schedule:

Course Number Date and Time:

(1 hour lunch
on your own)

Location: 
OU Campus
Module 1. Basic Valuation Fundamentals and Framework for Credit Analysis Saturday, July 25

8:00 am - 4:30 pm
234 Elliott Hall/Webinar

Module 2.  Estimating the Probability of Default and Payoffs in Default*
Saturday, August 8

8:00 am - 4:30 pm
234 Elliott Hall/Webinar

Module 3.  Applications to Different Situations**
Saturday, August 22

8:00 am - 4:30 pm
234 Elliott Hall/Webinar

Module 4.  Valuation of Embedded Options and Special Features of Debt Instruments

Saturday, September 5

8:00 am - 4:30 pm
234 Elliott Hall/Webinar
Module 5.  Collateralized Debt Obligations (CDOs), Credit Default Swaps (CDS), the Financial Crisis, and Hedging Debts Saturday, September 19

8:00 am - 4:30 pm
234 Elliott Hall/Webinar

 

*This portion of the course can be expanded an additional week to discuss novel ways to improve recovery rates on mortgages and other secured loans after they have gone into default.

**This portion of the course can be expanded to enable credit analysis to incorporate factors such as the profitability of other business related to a credit granting decision (such as the profitable sale of goods by a manufacturer in the case of the manufacturer providing credit to customers, and such as the future business earned by lenders on borrowers from granting credit).