CREDIT ANALYSIS

SL888

A type of analysis an investor or bond portfolio manager performs on companies or other debt issuing entities encompassing the entity's ability to meet its debt obligations. The credit analysis seeks to identify the appropriate level of default risk associated with investing in that particular entity.

By identifying companies that are about to experience a change in debt rating, an investor or manager can speculate on that change and possibly make a profit. For example, assume a manager is considering buying junk bonds in a company, if the manager believes that the company's debt rating is about to improve, which is a signal of relatively lower default risk, then the manager can purchase the bond before the rating change takes place, and then sell the bond after the change in rating at a higher price.

SL888

There is the risk of the credit analysis such as credit risk.

The risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay a loan or otherwise meet a contractual obligation. Credit risk arises whenever a borrower is expecting to use future cash flows to pay a current debt. Investors are compensated for assuming credit risk by way of interest payments from the borrower or issuer of a debt obligation.

Credit risk is closely tied to the potential return of an investment, the most notable being that the yields on bonds correlate strongly to their perceived credit risk.

SL888

The higher the perceived credit risk, the higher the rate of interest that investors will demand for lending their capital. Credit risks are calculated based on the borrowers' overall ability to repay. This calculation includes the borrowers' collateral assets, revenue-generating ability and taxing authority (such as for government and municipal bonds).

Credit risks are a vital component of fixed-income investing, which is why ratings agencies such as S&P, Moody's and Fitch evaluate the credit risks of thousands of corporate issuers and municipalities on an ongoing basis.

SL888

The estimation of the debt that a company is unlikely to recover. The allowance for credit losses is from the perspective of the selling company that extended credit to its buyers. A certain amount of credit losses can be anticipated, and these expected losses are included as a contra asset and as an expense in the company's balance sheet and income statement respectively.

The line item is usually "Allowance For Credit Losses" or "Allowance For Doubtful Accounts" or a "Bad Debt Expense" entry. A company can use statistical modeling such as default probability to determine its expected losses to delinquent and bad debt. The statistical calculations can utilize historical data from the institution as well as from the industry as a whole.

The certain percentage of loans are expected to become delinquent. The allowance for credit losses is an accounting technique that allows companies to take these anticipated losses into consideration in its financial statements to limit overstatement of potential income. Companies regularly make changes to the allowance for credit losses entry to correlate with the current statistical modeling allowances. Companies may have a bad debt reserve to offset these credit losses.

jason23

Where is my dictionary ?

SL888

jason23 發表於 2012-10-29 17:06

                               
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Where is my dictionary ?

You ask me~~~i translate to you^^

司加Q

Z370 發表於 2012-10-29 17:07

                               
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You ask me~~~i translate to you^^

我讀得書小，你唔好呃禾

SL888

kitkit999 發表於 2012-10-29 20:15

                               
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我讀得書小，你唔好呃禾

no la~~~you are so ging, bro!!!!!!!!

司加Q

Z370 發表於 2012-10-29 20:21

                               
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no la~~~you are so ging, bro!!!!!!!!

我5色雞腸...

SL888

kitkit999 發表於 2012-10-29 20:30

                               
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我5色雞腸...

okok~

i can translate to Chinese version

馬後砲

Z370 發表於 2012-10-29 15:33

                               
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A type of analysis an investor or bond portfolio manager performs on companies or other debt issuing ...

如果睇錯呢 ?  

馬後砲

Z370 發表於 2012-10-29 15:35

                               
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The higher the perceived credit risk, the higher the rate of interest that investors will demand for ...

Key word is " perceived "   

SL888

馬後砲 發表於 2012-10-29 21:03

                               
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如果睇錯呢 ?

hahahahaha~~~a long term analysis can minimize the credit risk

SL888

馬後砲 發表於 2012-10-29 21:05

                               
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Key word is " perceived "

Yes.

馬後砲

Z370 發表於 2012-10-29 21:06

                               
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hahahahaha~~~a long term analysis can minimize the credit risk

會唔會一舖就炒魷架 ?  

SL888

馬後砲 發表於 2012-10-29 21:32

                               
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會唔會一舖就炒魷架 ?

No no.

Credit analyst is the back support for the relationship manager as well

司加Q

Z370 發表於 2012-10-29 20:34

                               
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okok~

i can translate to Chinese version

等你~

SL888

kitkit999 發表於 2012-10-29 22:47

                               
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等你~

OK!!!!!

henry1328

譯文如下:
分析A型投資者的債券投資組合經理執行公司或其他債務發行實體涵蓋的實體履行其債務責任的能力。信用分析的目的，以確定相應級別的違約風險與投資在特定的實體。

要經歷的變化債務評級的公司，投資者或經理可以推測，改變，並且可能使利潤。例如，假設一個經理正在考慮購買公司的垃圾債券，如果經理認為，該公司的債務評級是到提高，這是一個信號相對較低的默認風險，經理可以購買債券之前的評級變化需要的地方，變更後的債券評級以更高的價格再賣。

存在的風險，如信用風險的信用分析。

財政獎勵的借款人未能償還貸款或以其他方式滿足合同義務所產生的本金損失的風險損失。信貸風險產生時，借款人預期未來現金流量使用支付當前債務。投資者補償方式支付的利息從借款人或發行人的債務承擔信貸風險。

信貸風險是緊密聯繫在一起的潛在回報率的投資，最引人注目的是，債券的收益率相關性強烈，他們認為信貸風險。

較高的信用風險，更高的利率，投資者將借給他們的資本需求。根據借款人的償還能力，信用風險計算。這種計算方法包括借款人的抵押資產，創收能力和稅務機關（如政府和市政債券）。

信用風險是固定收益投資的一個重要組成部分，這就是為什麼評級機構如標準普爾，穆迪和惠譽的信用風險評估的一個持續的基礎上企業發行，直轄市，成千上萬的。


公司的債務，估計是不太可能恢復。信貸損失撥備是從銷售公司的角度來看，延長信用的買家。一定量的信貸損失，可以預期，這些預期損失作為資產和在公司的資產負債表和損益表的費用。

項目通常是“備抵呆帳”或“備抵呆帳”或“壞帳費用”項。公司可以使用統計模型，如違約概率，以確定其預期拖欠及壞賬損失。統計計算可以利用從該機構的歷史數據以及從行業作為一個整體。

一定比例的貸款預計將成為拖欠。信貸損失撥備的會計技術，可以使公司採取這些預期的損失考慮在其財務報表，以限制言過其實的潛在收入。公司定期進行更改的信貸虧損輸入與目前的統計建模津貼的津貼。公司可能有壞帳準備金，以抵消這些信貸虧損。

SL888

henry1328 發表於 2012-10-30 01:11

                               
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譯文如下:
分析A型投資者的債券投資組合經理執行公司或其他債務發行實體涵蓋的實體履行其債務責任的能力。 ...

真係唔該里。享利餅兄。