BADM 454 - Lending and Credit Risk Management

The course begins with a review of analytical underwriting principles illustrated via case studies. It proceeds to the evaluation of credit risk, principally from a probabilities, portfolio point of view in which regulatory standards for asset quality and capital adequacy are introduced. It concludes with consideration of credit risk management techniques, including the assessment of asset concentrations, diversification, securitization, and the use of credit derivatives. Prerequisite: BADM 312 3 credits