Effective Challenge: Something’s Fishy

Effective Challenge: Something’s Fishy

  Last time I shared some thoughts on what comprises an effective challenge. The short answer was, “Does someone else reach the same conclusion based on the information presented?” To answer this question, the reviewer must understand what is being communicated, evaluate the reasoning, and determine the impact. I wanted to drill into the second Read more about Effective Challenge: Something’s Fishy[…]

Leveraged Lending: Underwriting Standards

Leveraged Lending: Underwriting Standards

The underwriting standards in the Interagency Guidance on Leveraged Lending occupy about a page and a half of the 15-page guidance. The brevity of this section can be misleading. Underwriting any credit, let alone a leveraged loan, is a critical step in the credit risk process. Many of the standards listed are ones that readily Read more about Leveraged Lending: Underwriting Standards[…]

The Solution Seems Obvious – or Is it?

The Solution Seems Obvious – or Is it?

Hi Alison, I need you to deliver a credit writing training course. I’m tired of having to give memos back to my team for re-writes. This email was waiting for me last Friday morning from a potential client. It’s not an uncommon way that talent development professionals are approached. Managers see a problem with performance, Read more about The Solution Seems Obvious – or Is it?[…]

Leveraged Lending – Part Two

Leveraged Lending – Part Two

It all starts with a definition. One of the key pieces of the Interagency Guidelines on Leveraged Lending – and one many institutions struggle with – is how to define a leveraged loan. It’s important to get this right since it will impact a myriad of processes from what is reported as a leveraged loan portfolio Read more about Leveraged Lending – Part Two[…]

Leveraged Lending – Part One

Leveraged Lending – Part One

Nearly four years ago, the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) issued the Interagency Guidelines on Leveraged Lending. Early implementation was mixed as evidenced by Shared National Credit (SNC) exam results since it was issued. Concerns Read more about Leveraged Lending – Part One[…]

EBITDA, How Do I Use Thee? Let Me Count the Ways…

EBITDA, How Do I Use Thee? Let Me Count the Ways…

I posted two weeks ago about how EBITDA is here to stay as a financial metric for commercial loans even with its shortcomings, and last week we talked about EBITDA adjustments.  There are some adjustments that generally make sense, some that generally do not, and some that will depend on what the analyst is attempting Read more about EBITDA, How Do I Use Thee? Let Me Count the Ways…[…]