Loan Pricing
The course intends to explain debt as a funding sources and describe its pros and cons. Pricing of credit facilities need to be based on risk adjusted return on capital where the profitability of the exposure should be assessed along with the risks undertaken to achieve such profits.
The course also provides means to calculate the Risk Adjusted Return on Capital and recommend pricing structures based on the client’s rating and loan types.
What Will I Learn?
- Explain debt as a funding source, its pros and cons.
- Identify loan types and their relative degree of profitability.
- Define risk-adjusted return and risk-adjusted return on capital.
- Calculate and interpret an example risk rating.
- Recommend pricing structures based on rating and loan type.
Topics for this course
11 Lessons4h