Credit analysis

Are you guys learning all the dumb definitions for cash flow (and the ratios) that S&P uses for evaluating credit risk?

nope, I skipped it

the specific S&P material will not be on it… BUT, a great q would be to determine that credit rating of a bond given a set of metrics…

LOL, i’ll be lucky to remember all of my FCFF/FCFE formulas… negative on this one, you can have that point on me. bigger fishies to fry. if you want to tell me one now, though, i’ll try to remember it just for you.

I am skipping it too. We will go down together.

“All for one, and one for all!”

I must have missed this S&P stuff. What book/page in Schweser is it in?

deep2002 Wrote: ------------------------------------------------------- > “All for one, and one for all!” Sounds good. Can we skip time series too?

I’m the last one to ever advocate skipping, and I did not totally skip the S&P stuff, I did read it for each review, but I have no intention of learning those formulas.

Is this in FI?

Yes, but I’m telling you pinkman, its a few miniscule CF formulas, the LOS’s do not mention the word calculate, and it would be a waste of precious time.

I understand their use, and if they ask for a ratio I think I can put it together somehow. Memorizing it… no way!

I think it’s good to know the main items - free cash from ops, operating cash flow, discretionary cash flow and prefinancing cash flow and the four types of ratios.