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Learn/Private credit foundations

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Learn Private credit foundations

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B Basic

The capital structure8m
Leverage and coveragePro9m
Syndicated loans, high yield, and direct lendingPro9m
Covenants and documentsPro9m

A Advanced

Recovery and the waterfallPro10m
Building a downside casePro10m
A sponsor deal from the lender's seatPro10m
The credit memo and the credit interviewPro9m

FlashcardsPro0/18
Basic quizPro80% passes
Advanced quizPro80% passes
Terms

Private credit foundations

0
of 8 lessons: 0
of 18 cards

Flashcards Start the first lesson

How a lender thinks: where a loan sits, how much debt a company can carry, what the documents protect, and what you get back when it goes wrong.

BBasic4 lessons

1The capital structureEvery dollar that funds a company has a place in line. The closer to the front, the safer the claim and the lower the return it pays.8 min
2Leverage and coverageProTwo ratios do most of the work in a first look at a borrower: how many years of earnings the debt represents, and how many times earnings cover the interest.9 min
3Syndicated loans, high yield, and direct lendingProA leveraged company can borrow from three markets. They differ in who holds the debt, how it is priced, how fast it closes, and how much protection the lender gets.9 min
4Covenants and documentsProCovenants are the promises a borrower makes in the credit agreement. They are a lender's early warning system and its seat at the table when things start to slip.9 min
Basic quizPro10 questions, 80% passes

AAdvanced4 lessons

5Recovery and the waterfallProWhen a borrower fails, the company's remaining value is paid out in order of priority. A lender's loss depends as much on where it sits as on whether default happens.10 min
6Building a downside caseProA lender's upside is capped at the coupon, so the work is in the bad scenario: how far earnings can fall, how fast, and whether the company still pays you.10 min
7A sponsor deal from the lender's seatProPrivate credit mostly lends to companies a PE sponsor is buying. You read the same model the sponsor built, but you care about different years and a different question.10 min
8The credit memo and the credit interviewProEverything in this track ends in a memo to the investment committee and a recommendation you defend. Credit interviews test that judgment more than PE interviews do.9 min
Advanced quizPro10 questions, 80% passes