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Additional Credit Monitor Training:
Credit Monitor/Public Firm EDF Training - Online
Credit Monitor/Public Firm EDF Training - Classroom
Credit Monitor/Public Firm EDF Training - Client-Site Customized |
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Overview
A pair of pre-recorded online tutorials provide a practical understanding of the public firm EDF methodology and its application using Credit Monitor. Participants learn to use Credit Monitor to analyze default risk of public firms through interactive exercises. Basic through advanced concepts are explained in an intuitive and interactive format. The tutorials can be accessed at any time, at support.mkmv.com.
Who Should Attend
This tutorial is targeted to credit professionals who wish to better understand the Moody's KMV EDF model and its implementation in Credit Monitor, so that they can fully utilize it to analyze credit risk of public firms.
Objectives
On completion of the seminar, participants will:
- Understand the public firm EDF methodology and its implementation in Credit Monitor
- Understand the relationship between a public firm's capital structure, its market value of equity, and its market value of assets, and how it is used to calculate its probability of default.
- Know how to use Credit Monitor to understand the drivers behind a firm's default risk, compare a firm with other firms or peer groups, and do what-if and pro-forma analyses
Topics
Part 1: Understanding the public EDF model (30 minutes)
- Understanding the probability of default and the cause of default
- Driving the EDF: Asset Value, Default Point, and Asset Volatility
- Estimating the drives: Equity as a call option on a firm's asset
- Putting it together: From three drivers to Distance-to-Default and EDF credit measure
Part 2: Interpreting Outputs and Reports (25 minutes)
- Looking up companies
- Building portfolios and measuring EDF change
- Identifying EDF drivers
- Comparing to peers
- Performing What-if Analysis
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