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| Foreword | |
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| Preface | |
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| New Approaches to Fundamental Analysis | |
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| Introduction to Bank Risk Management | |
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| The PRISM Credit Model: Lending Practices | |
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| PRISM Credit Model | |
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| The Basel Committee Consultative Paper and the PRISM Model | |
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| Loan Structure Structuring Loan Agreements | |
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| Abstract of the Basel Committee's Principles for the Management of Credit Risk | |
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| Accounting Standards, Flags, and Distortions | |
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| Accounting STandards: A Lender's Guide | |
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| Footnotes: An Astute Lender Can Be No Less an Astute Auditor | |
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| Basic Elements of Flags, Gimmicks, and Problems: A Few Words Can Be Worth a Thousand Pictures | |
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| Dubious Accounting: Enron Corporation 2001 | |
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| Chapter Summary: The Tie between Bankers and Auditors | |
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| A Review of Elemental Financial Statements | |
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| Multivariate Ratio Analysis: A Banker's Guide | |
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| Introduction and Overview | |
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| Liquidity Ratios | |
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| Activity or Turnover Ratios | |
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| Profitability Ratios | |
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| Leverage Ratios | |
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| Growth Ratios | |
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| Valuation Ratios | |
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| Statistical Analysis of Ratios | |
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| Sources of Comparative Ratios | |
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| Credit Analysis of Seasonal Businesses: An Integrated Approach | |
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| Examples of Seasonal Businesses | |
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| The Successful Seasonal Cycle | |
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| Seasonal Lending Techniques | |
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| Preparing a Cash Budget | |
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| Example: Break-Even Shipments | |
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| Defensive Measures | |
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| Asset-Based Lending | |
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| Market Segments | |
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| Security Interest | |
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| Federal Reserve Audit Guidelines: Collateral | |
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| Loans Secured with Accounts Receivables | |
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| The Audit: Scope and Details | |
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| Loans Secured by Inventories | |
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| Loans Secured By Marketable Securities | |
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| Case Study: Collateralized Loans Gone Wrong: Home Federal Savings & Loan Association of San Diego, California: 1994 | |
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| Home Federal Savings & Loan Analysis | |
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| Accounts Receivable Financing Examination Procedures Commercial: Bank Examination Manual, March 1994 | |
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| Cash Flow Analysis: A Banker's Guide | |
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| Cash Versus Accrual-Based Income | |
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| Introduction to Analysis: SFAS 95 and IAS 7 | |
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| Cash Flow Workshop | |
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| Final Points about Cash Flow Analysis | |
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| Analysis: Essar Steel Limited, Mumbai, India | |
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| Cash Flow Reconstruction | |
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| Projections and Risk Assessment | |
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| Forecasting Factors | |
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| Statistical Forecasting | |
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| Sensitivity Financial Forecasting | |
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| A Simulations Approach to Financial Forecasting | |
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| Stochastic Optimization | |
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| Use of Forward-Looking Tools in the Approval Process | |
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| Glossary of Forecasting Terms | |
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| Distribution Terms and Glossary | |
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| A Banker's Primer on Real Options Johnathan Mun, Ph.D. | |
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| Risk Management and Sustainable Growth | |
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| The Industry Life Cycle | |
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| The Sustainable Growth Model | |
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| Solving Sustainable Growth Problems | |
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| A New Strategy: The Solution | |
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| Curve Fitting | |
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| Financial Distress: Recognition and Diagnosis of Troubled Loans | |
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| Financial Distress Models | |
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| From Recognition and Diagnosis to Criticized Loans and Classification Status | |
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| From Classification Status to Workout | |
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| From Workout to the Courts | |
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| Developing a DIP Analysis: The Due Diligence Process of a Leading Commercial Finance Institution | |
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| U.S. Lender Liability Litigation Through 1992 | |
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| Credit Administration | |
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| Establishing a Risk Management Area | |
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| Loan Policy | |
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| Credit Policies and Procedures: Formal and Written | |
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| FRB Loan Examination: Internal Loan Review | |
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| Identifying, Classifying, and Communicating Main Causes of Loan Problems | |
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| The Role and Responsibilities of Loan Officers | |
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| Credit Reviews and the Quality of Financial Analysis | |
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| Uniform Financial Institution's Rating System Commonly Refered to as the Camels Rating System | |
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| Formal Credit Policies | |
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| Capital Adequacy | |
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| A Historical Perspective: Traditional Asset Categories | |
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| Value Defined by Accounting, Economic, and Regulatory Factors | |
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| Breakdown of Tier Capital Components | |
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| The Second Pillar: Supervisory Review of Capital Adequacy | |
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| The Third Pillar: Market Discipline | |
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| Capital Ratios | |
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| An Example of a Bank's Capital Structure | |
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| Portfolio Maintenance: An Overview | |
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| The Case For Loan Portfolio Management | |
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| Monitoring Systematic Risk in the Portfolio: Macroeconomic and Industry Exposures | |
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| Hedging Down Risky Exposures | |
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| Credit Derivatives | |
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| An Introduction to the Statistics of Portfolio Management | |
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| Optimizing A Bank Portfolio Using Excel's Solver | |
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| Portfolio Management of Default Risk | |
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| The Model of Default Risk | |
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| Asset Market Value and Volatility | |
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| Measurement of Portfolio Diversification | |
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| Model of Default Correlation | |
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| Model of Value Correlation | |
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| The Likelihood of Large Losses | |
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| Valuation | |
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| Economic Capital and Fund Management | |
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| Risk Contribution and Optimal Diversification | |
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| Risk Contribution and Economic Capital | |
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| Commitments, Covenants, and Exposure | |
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| Subportfolio and Portfolio | |
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| Relationship and Customer Profitability | |
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| EDF Credit Measure | |
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| Measuring Default Probability: The Problem | |
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| Measuring Default Probability: A Practical Approach | |
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| A Closer Look at Calculating EDF Credit Measures | |
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| Calculating Long-Term EDF Credit Measures | |
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| Some Frequently Asked Questions about KMV's EDF Credit Measures | |
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| Testing the Default Measure's Performance | |
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| Credit Derivatives: New Instruments to Trade Credit Risk | |
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| Credit Events | |
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| Materiality Requirement | |
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| Market Growth | |
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| ISDA Documentation | |
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| Pricing Credit Derivatives and the Referenced Credit | |
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| Credit Derivatives: Basic Structures | |
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| Short Examples of Credit Derivatives Utilization | |
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| An Overview of Risk-Adjusted Return on Capital (RAROC) and CreditMetrics | |
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| Risk-Adjusted Return on Capital (RAROC) | |
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| CreditMetrics | |
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| Global Exposure Tracking Systems: Application and Design | |
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| Customer Responsibility (Coordination) Units | |
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| Family Responsibility (Coordination) Unit | |
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| GES and Loan Concentrations | |
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| Exposure Information Systems: Design | |
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| Data Architecture | |
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| Pricing Models: Design and Application | |
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| Pricing Errors | |
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| Default Rates and Loan Pricing | |
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| Loan Pricing Models | |
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| Stochastic Net Borrowed Funds Pricing Model | |
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| Loan Pricing and the Option Pricing Model | |
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| Case Study: Morton and Maryann Magazine Corp. | |
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| Risk Rating Models: Design and Application | |
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| Risk Rating Tutorial: ROBFEL _New4.xls | |
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| Obligor Grades | |
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| Facility Grades | |
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| Index | |