Debt Modeling and Covenant Analysis for Commercial Banking

Commercial lending requires a rigorous understanding of how debt structures impact a borrower's financial health. Understanding how to build clean, flexible debt models is a critical skill for aspiring credit analysts and commercial bankers. In this practical text-based course, you will learn the foundational concepts of commercial debt modeling and transition into constructing structured models that incorporate realistic amortization schedules, interest calculations, and covenant compliance checks. What you'll learn: - Understand the core mechanics of commercial loans, including revolving credit lines, term loans, and cash sweeps. - Build dynamic debt schedules in Excel using modern, clean formulas and best modeling practices. - Analyze financial covenants to evaluate borrower compliance and predict potential breaches under different scenarios. - Apply scenario analysis to stress-test debt service coverage ratios (DSCR) and leverage ratios. - Design clear, structured model outputs that support credit memos and risk-assessment decisions. The course begins with foundational credit concepts and debt terminology before guiding you step-by-step through the logic of building a fully integrated debt model from scratch. It is designed for beginners, aspiring credit analysts, and finance professionals looking to build a solid foundation in commercial banking analysis with no prior modeling experience required. Start reading today to master the essentials of commercial debt modeling.