Articles in Financial Transactions

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Interest Rate Benchmarking for Intercompany Loans: CUP Approaches and Yield Construction
Financial Transactions

Interest Rate Benchmarking for Intercompany Loans: CUP Approaches and Yield Construction

Pricing an intercompany loan with the CUP method: internal versus external comparables and constructing a yield from a risk-free base plus a credit spread.

7 min Credit Rating for Intercompany Loans: Standalone Ratings, Implicit Support, and the Rating Build
Financial Transactions

Credit Rating for Intercompany Loans: Standalone Ratings, Implicit Support, and the Rating Build

Deriving a borrower's credit rating for an intercompany loan: standalone versus group rating, implicit support, and how notching sets the spread.

7 min Debt Capacity and Borrower Analysis: How Much Debt Is Arm's Length?
Financial Transactions

Debt Capacity and Borrower Analysis: How Much Debt Is Arm's Length?

The quantum question in a loan analysis: assessing a borrower's arm's length borrowing capacity, the metrics that bound it, and how excess debt is treated.

7 min