Programs
JStar & Associates provides highly customized training using structured frameworks that can be applied across companies and industries. Our programs use up to date tools and methodologies that allow participants to evaluate companies and transactions in a practical and time efficient manner, making them more effective in their day-to-day responsibilities.
The following is a brief description of some of the courses that we are currently offering. For more information on our course offerings please contact us.
Corporate Credit Analysis
Typically a 2-4 day program
Corporate Credit Analysis introduces and reviews the frameworks and tools necessary to undertake a critical analysis of credit risk.
This program provides a structured analytic approach that can be used to assess credit risk in a practical and time efficient manner across companies and sectors. The course focuses on the value of balancing qualitative and quantitative analysis, the benefits and limitations of ratio analysis and the need to use cash flow statements to assess a company’s capacity to repay and its ability to maintain a competitive position. In addition, the course addresses core credit products and the need to fully evaluate the capital structure, with a special emphasis on the structure of debt instruments, when analyzing default risk and recovery rates.
Financial Statement Analysis: A Foundation Level Workshop
Typically a 1-2 day program
This program provides an introduction to financial statement analysis. The program focuses on the interrelationships between the income statement, balance sheet and cash flow statement and how these statements are used to evaluate a company’s financial health and stability. Participants gain an understanding of the key financial measures used to assess a company’s operating results, asset efficiency and the appropriateness of the capital structure. In addition, financial performance is also addressed in the context of peer and industry performance.
Debt Servicing: Applied Cash Flow Analysis
Typically 1/2-1 day program
The focus of this program is to identify the borrowers within a corporate structure, the specific purpose of the debt and the expected sources of repayment by analyzing cash flow information. Participants learn about refinancing risk and how to anticipate a company’s need for access to capital and its ability to maintain or improve a credit rating. During the course of this program, participants evaluate the sustainability of a company’s operating cash flow and the required asset investments. Funding requirements and the ability to meet these needs are assessed, including working capital finance (i.e. a short term vs. permanent need for funds) and other operating requirements.
Understanding Covenant Structures
Typically 1/2-1 day program
The Understanding Covenants Structures workshop will provide participants with an understanding of the purpose of covenants and the need to, and techniques for, assessing the degree of effectiveness in protecting a lender’s interests. Specifically, this training will equip participants to: use their assessment of corporate credit risk to identify key risks and the need for structural protection; review covenant language in order to grasp the true implications of the protections offered by the covenant; assess the effectiveness of covenants in protecting the lender’ s interests.
Understanding Credit Products and Debt Structures
Typically 2-3 day program
The Understanding Credit Products and Debt Structures course is designed to broaden the participant’s knowledge of the various fixed income products that are available to companies, including bank loans, bridge loans, second lien debt, commercial paper, notes, bonds, asset-backed securities, convertibles and other hybrid securities and the uses and limitations of each instrument. In addition, the course will focus on the need to appropriately assess the key terms and conditions of debt instruments to determine their ability to effectively mitigate risks.
Early Warning Signals For Troubled Credits
Typically 1-2 day program
The Early Warning Signals for Troubled Credits program provides participants with a structured analytic approach that can be used to identify signals of potential credit deterioration and help them to develop an appropriate action plan to optimize value and adequately protect their position. Specifically the program is designed to help participants to confirm signals of deterioration and consider potential actions/reactions. To ensure that the learning objectives are met, cases and exercises are used throughout the program to challenge the participants to apply what they have learned.
Evaluating Liquidity and the Degree of Refinancing Risk
Typically 1/2 day program
Exposure to liquidity risk was one of the main causes of the credit crisis of 2008. This intensive half-day program offers an overview of how to forecast and test the available sources and uses of liquidity by using financial statements and other information contained in the annual report. During the course participants learn how to identify companies with weak liquidity positions and anticipate the likely impact on credit ratings and the risk of default.