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Credit

Credit analysis resources, loans, bonds, and other fixed-income concepts...

Credit Resources, Articles, and Templates

Credit is an important financing option for both business and individuals. Knowing the different types of credit instruments available, their characteristics, yields and other important credit and fixed-income topics. Credit Analysis can be a complex and daunting process, and CFI’s guides were created to ease your understanding. These resources are designed for those who want to become a world-class credit analyst. Learn at your own pace by reading the guides, which include applied examples, step-by-step breakdowns, video instructions, and templates.

 

 

Matrix Pricing for Bonds - Illustration of this credit concept

Learn Credit Analysis Online

This resources library is designed to help you learn credit analysis online. Each article can stand on its own, and you can read through them in whatever order you please. By making your way through these resources you’ll learn the important skills every credit analyst needs to excel on the job.

 

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Bond Pricing

What is Bond Pricing? Bond pricing is an empirical matter in the field of financial instruments. The price of a bond depends on several characteristics inherent in every bond issued. These characteristics are: Coupon, or lack thereof Principal/par value Yield to maturity Periods to maturity Alternatively, if the bond price and all but one of...

Bond Ratings

What are Bond Ratings? Bond ratings are representations of the creditworthiness of corporate or government bonds. The ratings are published by credit rating agencies and provide evaluations of a bond issuer’s financial strength and capacity to repay the bond’s principal and interest according to the contract.     The three private independent rating agencies –...

Bond Tranches

What are Bond Tranches? Bond tranches are usually portions of mortgage-backed-securities that are offered at the same time and usually carry different risks, rewards, and maturities. For example, collateralized mortgage obligations (CMO) are structured with a number of tranches that mature on different dates, carry varying levels of risks and pay different interest rates. These...

Bonds

What are Bonds? Bonds are fixed-income securities that are issued by corporations and governments to raise capital. The bond issuer borrows capital from the bondholder and makes fixed payments to them at a fixed (or variable) interest rate for a specified period.     What is an Indenture? An indenture is a binding contract between...

Bridge Loan

What is a Bridge Loan? A bridge loan is a short-term form of financing that is used to meet current obligations before securing permanent financing. It provides immediate cash flow when funding is needed but is not yet available. A bridge loan comes with relatively high interest rates and must be backed by some form...

Cash Credit

What is Cash Credit? A Cash Credit (CC) is a short-term source of financing for a company. In other words, a cash credit is a short-term loan extended to a company by a bank. It enables a company to withdraw money from a bank account without keeping a credit balance. The account is limited to...

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