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Provided by: FitchTraining Non-Bank Financial InstitutionsAccounting and Finance |
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Training
Provided by FitchTraining
A three-day intensive, case study based, workshop offering an in depth view of the main non-bank financial institutions: finance and leasing companies, securities companies and regulated funds and fund managers.
Related Awards, Degrees or Certifications: Earn CPD credits
We are an accredited training provider with a number of institutions including:
ACCA
NASBA
Securi
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Non-Bank Financial Institutions
Course Objectives
Participants will be equipped to:
Distinguish the key business and financial risks by sector, market and product line
Use quantitative and qualitative analysis and market indicators to identify strong and weak performers and detect early signals of changing credit quality
Evaluate financial statements to uncover key credit issues and the impact of differing accounting policies.
Target Audience
An intermediate credit course for experienced fixed income, commercial and investment banking professionals responsible for fixed income investment, sales/ trading, credit risk management or origination. Participants with less experience in the analysis of financial statements may wish first to attend the two day Introduction to Bank Financial Statements , which leads into this workshop.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
ANALYTIC OVERVIEW
Purpose payback model - a structured approach to credit analysis
Key risks - operating environment, financials, management and support
Exposure structures - key risks and mitigants by sector
Statement logic: using the business cycle to anticipate balance sheet structures
FINANCE AND LEASING COMPANIES
Operating environment
Key risks and competitive issues by sub-sector - sales finance, direct finance, equipment finance, credit cards and mortgages etc.
Impact of minimal regulation and supervision; legal framework of secured lending
Management, franchise and ownership
Franchise - assessing the validity of the business model, residual marketing
Critical management issues for finance and leasing companies - processes and systems, market knowledge, strategy etc.
Shareholders - quality of financial and business support; risks and benefits of cross subsidies
Financial fundamentals
Statement logic; accounting policies for income, receivables, delinquencies and leases (finance versus capital leases etc.)
Business risk - use of financial tools to assess quality of lease and loan book; reserve adequacy, owned versus managed book; residual risk
Funding risk - stability and variety of wholesale funding sources, gap management, availability of contingency funding, liquidity and capital adequacy
Securitization - benefits and risk of off balance sheet funding vehicles; residual risk, mortgage servicing rights and gain on sale accounting
Performance risk - balancing risk and return; income stability and expense control
Early warning signals - lessons learned from a failed finance company
SECURITIES COMPANIES
Operating environment
Understanding the risks in the different securities markets
Key competitive issues by sub-sector - investment banks, wholesale brokers, specialists, prime brokers, retail brokers etc.
Regulation and supervision - focal points; impact on strategy and credit standing
Management, franchise and ownership
Critical management issues for securities companies - strategy, risk management (VaR and other models), corporate governance and key man issues
Shareholders - quality of financial and business support
Double leverage and other group or conglomerate risks
Franchise - maintaining advantage in a competitive market
Financial fundamentals
Statement logic - key accounting policies and risk of window dressing
Performance risk - earnings volatility and cost control
Business risk - risk profile of securities company products and businesses
Market risk / asset quality - key accounting issues, securities haircuts, off balance sheet exposures etc.
Financial risk - managing funding stability and liquidity risk
Capital adequacy - regulatory and analytic tools to assess the strength of capital and the risks of leverage
Early warning signals - lessons learned from a failed securities company
FUNDS AND FUND MANAGERS
Fund Orientation
Types of fund - regulated (mutual and pension funds), less or un-regulated (hedge funds, fund of funds etc.)
Fund objectives, policies and practices - assessing the risk profile
Structure and legal status of funds
Key parties - fund manager, custodian, prime broker etc.
Regulation and supervision
Financial fundamentals
Market risk - evaluating fund objectives and practices and the degree of market volatility and liquidity risk involved
Performance - benchmarking performance against indices and evaluating past performance; Sharpe and other performance measures
Size - reviewing size, diversification and market position of fund
Liquidity - redemption risk and benefits of capital locks, back-up credit lines
Asset quality - assessing the risks in the asset composition, haircut analysis and NAV calculations
Leverage - current and maximum leverage, use of hybrid capital
Fund manager
Role and relevance of the fund manager; experience
Size, breadth and depth of client base; diversity of funds
Performance risk - earnings diversity and stability; control of expenses
Business risk - cash management, investments in funds, management controls, cash-flow analysis
Financial risk - leverage, liquidity and earnings stability.
Participants will be equipped to:
Distinguish the key business and financial risks by sector, market and product line
Use quantitative and qualitative analysis and market indicators to identify strong and weak performers and detect early signals of changing credit quality
Evaluate financial statements to uncover key credit issues and the impact of differing accounting policies.
Target Audience
An intermediate credit course for experienced fixed income, commercial and investment banking professionals responsible for fixed income investment, sales/ trading, credit risk management or origination. Participants with less experience in the analysis of financial statements may wish first to attend the two day Introduction to Bank Financial Statements , which leads into this workshop.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
ANALYTIC OVERVIEW
Purpose payback model - a structured approach to credit analysis
Key risks - operating environment, financials, management and support
Exposure structures - key risks and mitigants by sector
Statement logic: using the business cycle to anticipate balance sheet structures
FINANCE AND LEASING COMPANIES
Operating environment
Key risks and competitive issues by sub-sector - sales finance, direct finance, equipment finance, credit cards and mortgages etc.
Impact of minimal regulation and supervision; legal framework of secured lending
Management, franchise and ownership
Franchise - assessing the validity of the business model, residual marketing
Critical management issues for finance and leasing companies - processes and systems, market knowledge, strategy etc.
Shareholders - quality of financial and business support; risks and benefits of cross subsidies
Financial fundamentals
Statement logic; accounting policies for income, receivables, delinquencies and leases (finance versus capital leases etc.)
Business risk - use of financial tools to assess quality of lease and loan book; reserve adequacy, owned versus managed book; residual risk
Funding risk - stability and variety of wholesale funding sources, gap management, availability of contingency funding, liquidity and capital adequacy
Securitization - benefits and risk of off balance sheet funding vehicles; residual risk, mortgage servicing rights and gain on sale accounting
Performance risk - balancing risk and return; income stability and expense control
Early warning signals - lessons learned from a failed finance company
SECURITIES COMPANIES
Operating environment
Understanding the risks in the different securities markets
Key competitive issues by sub-sector - investment banks, wholesale brokers, specialists, prime brokers, retail brokers etc.
Regulation and supervision - focal points; impact on strategy and credit standing
Management, franchise and ownership
Critical management issues for securities companies - strategy, risk management (VaR and other models), corporate governance and key man issues
Shareholders - quality of financial and business support
Double leverage and other group or conglomerate risks
Franchise - maintaining advantage in a competitive market
Financial fundamentals
Statement logic - key accounting policies and risk of window dressing
Performance risk - earnings volatility and cost control
Business risk - risk profile of securities company products and businesses
Market risk / asset quality - key accounting issues, securities haircuts, off balance sheet exposures etc.
Financial risk - managing funding stability and liquidity risk
Capital adequacy - regulatory and analytic tools to assess the strength of capital and the risks of leverage
Early warning signals - lessons learned from a failed securities company
FUNDS AND FUND MANAGERS
Fund Orientation
Types of fund - regulated (mutual and pension funds), less or un-regulated (hedge funds, fund of funds etc.)
Fund objectives, policies and practices - assessing the risk profile
Structure and legal status of funds
Key parties - fund manager, custodian, prime broker etc.
Regulation and supervision
Financial fundamentals
Market risk - evaluating fund objectives and practices and the degree of market volatility and liquidity risk involved
Performance - benchmarking performance against indices and evaluating past performance; Sharpe and other performance measures
Size - reviewing size, diversification and market position of fund
Liquidity - redemption risk and benefits of capital locks, back-up credit lines
Asset quality - assessing the risks in the asset composition, haircut analysis and NAV calculations
Leverage - current and maximum leverage, use of hybrid capital
Fund manager
Role and relevance of the fund manager; experience
Size, breadth and depth of client base; diversity of funds
Performance risk - earnings diversity and stability; control of expenses
Business risk - cash management, investments in funds, management controls, cash-flow analysis
Financial risk - leverage, liquidity and earnings stability.
About The Training Provider: FitchTraining
FitchTraining - Fitch Training is a specialist training firm focused on the provision of credit and corporate finance training. Courses are offered in three areas: financial institutions, corporate credit and securitization. Fitch Training is part of Fitch Solutions, a division of the Fitch Group. We also work in partnership with Fitch Solutions to provide quantitative training.
Fitch Training operates...
