Miscellaneous
What does FBI and QOFs stand for and which one is quantitative and qualitative?
What is Financial Based Indicator (quantitative) and Qualitative and Other Factors (qualitative)
What system shows all facilities, financial statements, and grading for each client?
What is iCRD
What is connecting with and researching new companies to determine potential partnership opportunities called?
What is Prospecting
A borrower has a long cash conversion cycle and limited revolver availability. What risk category would this fall under?
What is Financial Risk (Liquidity)
What is the Bank's primary source of repayment?
What is Cash Flow
What does FBI and QOFs stand for, and which one is quantitative and qualitative?
What is Financial Based Indicator (quantitative) and Qualitative and Other Factors (qualitative)
What industry grows and sustains relationships with nearly 22,000 clients across 115 U.S cities with annual revenue of $20-2 billion?
What is Core Diversified?
What JPM system is used to initiate creation of an iCRD proposal?
What is “Credit Navigator”
What step in the credit prosses is the Opportunity Memo and term sheet prepared?
What is Deal Analysis OR Pitch
Top Customer of Company ABC represents 35% of revenue. What risk category would this fall under?
What is Business Risk (Customer Concentration)
List two types of assets the Bank would consider as collateral.
What is A/R, Inventory, Machinery/Equipment, Real Estate
JPMC Commercial Banking clients are most commonly assigned obligor grades within this range.
What is 4+ to 6-
What industry focuses on companies with the ability to scale quickly and has a revenue source tied to goods and/or services provided primarily via ecommerce?
What is TDC (Tech and Disruptive Commerce)
What grading outputs are assigned through iCRD grading (name at least two)?
What are Obligor Grade, Default Grade, and/or Loss Given Default
What step of the credit process are terms negotiated and legal documentation is completed?
What is Credit Analysis / Closing
Industry XYZ has low barriers to entry and many players. What risk category would this fall under?
What is Industry Risk (Competitive Landscape)
What are intangible assets?
Intangible assets include intellectual property, goodwill, contracts, and securities
This is the final borrower-level rating after adjusting the FBI for QoFs.
What is Obligor Grade (OG)?
What is the formula for Fixed Charge Coverage Ratio?
(JPM Adj. EBITDA – Maintenance Capex) / (Principal Payments + Cash Interest + Cash Taxes + Cash Distributions)
What grade is derived from Default Grade and LGD for each facility?
What is Facility Grade
Name two initial pitch documents where one is NOT a legal commitment and the other IS a legal commitment
What are “Term Sheet” and “Commitment Letter”
Examples of a _____ ____ include Secured Asset Recovery Liquidation, Enterprise Value Recovery, Cash & Marketable Securities, and Commercial Card – Wholesale excluding Business Banking.
What is LGD Decision Tree?
Why does the Bank need collateral/security?
If a lender is unsecured, in a bankruptcy, the lender is at the same place in line as all other unsecured creditors (Partial credit: to ensure the Bank gets paid)
Name two of the four items that impact the initial LGD.
What is type of obligor, quality of collateral, degree of monitoring, and seniority in capital structure
What group establishes a group of lenders familiar with the client and credit profile to provide different credit facilities?
What is SFG (Syndicated Finance Group)
Name two Pathfinders the Credit team must complete based on terms and conditions of the transaction
What are Leverage Finance / Heightened Standards (LF / HS) and Federal Deposit Insurance Corporation (FDIC)
While the Credit Officer/Analyst is working on the TAM/270/grading, who is the designated individual who assists with ICRD proposal creation and management
What is “Proposal Specialist”
What is the term for when the pledged collateral (after eligibility and haircuts) fails to provide adequate coverage for the requested facility?
What is Air-Ball (Collateral Coverage Shortfall)
When would the Bank consider providing unsecured lending?
Larger company AND/OR Investment grade
What are the steps in determining LGD (hint: there are 4)?
What is selecting the appropriate LGD Decision Tree, determining the appropriate path for Preliminary LGD, applying the appropriate modifiers (quantitative, qualitative, or jurisdictional), and documenting your results