Evaluating Structured Finance

This unique seminar evaluates structured finance on the basis of loan level and portfolio level performance as well as industry risks. The objective of the course is to focus on more than the instruction of techniques and definitions; it will delve into programmes from the loan level through the portfolio level to create a complete credit experience. This course develops a framework and methodology for evaluating structured finance credit risk using fundamental credit and industry analysis rather than just statistical analysis. This framework and methodology leads to participant evaluation of structured finance which takes into account migration risk as well as default and loss risk.

The evaluation methodology includes risk assessment of loan-level, portfolio-level and industry-level risk analysis as well as techniques for integrating these factors to come up with an estimated likelihood of default and migration risk. The loss methodology includes methods for evaluating recovery based on the quality and value of collateral, changes in collateral values, trends in collateral values and expectations about future collateral values.

In addition, the instructor will shed light on the rating agencies disastrous rating performance in 2008 and 2009 and evaluate the recent changes in their methodologies. It concludes by providing a new methodology which attempts to compensate for the fundamental flaw in their approach to rating structured finance.

Who will benefit?

The seminar is primarily for analysts in credit and counterparty risk, portfolio managers, market risk professionals, account officers, credit administrators and debt investors.

For more information, please contact your representative:

Mark Heaton
Senior Regional Consultant, Europe
The Risk Management Association
27 Old Gloucester Street
London
WC1N 3AX
Tel 44 (0) 1732852225
Mob 44 (0) 7976722851
mheaton@rmahq.org