Credit Risk Modelling: PD, LGD and EAD Explained With an Example
Learn credit risk modelling with a PD, LGD and EAD worked example, Excel formulas, stress tests, validation checks and common interview questions.
Category Corporate Finance
Example of A/D Analysis (Accumulation/Distribution Analysis)
Accumulation/Distribution (A/D) Analysis is a technical indicator used in financial markets to assess the relationship between stock prices and trading volume. It helps determine whether a stock is being accumulated (bought) or distributed (sold). The indicator calculates the “money flow”…
New Age Sources of Working Capital a Definitive study
New Age Sources of Working Capital: A Definitive Study** discusses the new-age, rapidly growing startup fintechs focusing on providing working capital loans. Since the 2008 credit crisis, tight banking regulations have opened the way for alternative financing solutions that have made it easier for businesses to source much-needed funds.
5 Critical Pitfalls of Target Costing
So there is enough literature out there which talks about target costing definition and the features of target costing. Hence in this article, you should expect less on what but the problems of target costing. Define Target Costing Target costing…
Difference between internal check and internal audit
Difference between internal check and internal audit So the major difference between internal check and internal audit is that internal check is a subset of the internal audit. Which also means that the flow of a good company with good…
Change Control Board- Explained in detail with examples
Change Control Board Meaning So let’s suppose you are a business owner and created a detailed financial plan for the year 2024. Everything was good until there was a change in the marketing policy of facebook. Which could severely affect…
Cash Management Bill- (CMBs) Explained in Detail
Cash Management Bill So, think of cash management bills as very short term securities sold by the government to meet short term emergency funding requirements. They can also be issued during emergency funding situations. Also these securities are not available…
Alternative Director- Explained in Detailed
Alternative Director So, imagine you had a company and you were ofcourse the director of the company. But what happens to all the legal and regulatory compulsions when you are not there. For example; You are sick, or a parental…
Difference between factoring and bill discounting
So, imagine you are running a business and you have sold your products or services on credit. And the payments are due to come in the coming few months. However, you need funds to manage your working capital expenses like…
Sampling Error Formula – With Real Life Examples
The sampling error formula is Sampling Error = Z x (σ /√n), is a statistical formula and tool used to calculate the overall inaccuracy of the calculation. Of course, when I just discuss the formula then it appears complicated. However,…
Simple Interest Formula in Hindi- Detailed Explanation with examples
तो, चलिए मैं एक बहुत ही सरल उदाहरण से शुरुआत करूँ जिससे हम सिर्फ Simple Interest Formula in Hindi को समझ सकें। तो, मान लें कि आपके दोस्त ने आपको $100 दिए और कहा कि एक साल में मुझे $100…
Annual Equivalent Cost- Explained
So the equivalent annual cost is an important metric used in corporate finance used by finance managers to make asset purchase decisions. Hence what it entails is to calculate the NPV of the benefits of using the asset of over…
