|Topic||FINA 4065 Credit Analysis Project Spring 2018 Word Document|
|Sources / references||7|
|Description / paper instructions
IMPORTANT NOTE: Professor said you can pick any two “similar” bonds and company to compare. And At least 5 PAGES. 5-7 pages!!! please! Thank you !
FINA 4065 Spring 2018 DR. KRAUSE 50 POINTS DUE: 5/4/2018 in D2L
CREDIT ANALYSIS PROJECT
This project will involve a thorough credit analysis of two comparable publicly traded corporate bonds (preferably investment grade and in the same sector). You can select the corporate bonds from your own search by going to the FINRA bonds site:http://finra-markets.morningst
You can do a search of all corporate bonds using the bond screener tool on the FINRA and Yahoo sites. You should try to select bonds that are in the same industry/sector, have at least 5 years until maturity, and have comparable maturities and credit ratings. You can also select bonds from other sources, if you prefer.
Once you have selected your bonds (after determining that sufficient information about the firms and issues are available), you should submit this information into the appropriate D2L Dropbox folder (Names and CUSIPS of Bonds for Credit Analysis). Assume that your selections are approved, unless Dr. Krause notifies you to the contrary. (I am trying to avoid more than one analysis of the same bond).
The material in Chapter 5 and 6 should provide useful guidance for this project – as well as Janet Rilling’s presentation. Your analysis should include the following:
1. General background information about the companies and the respective industry sector.
2. Information about the companies’ outstanding bond issues, capital structure, credit rating history, and other issues pertinent to their creditworthiness.
3. A financial analysis of the past 5 years – including key ratios (coverage, leverage, debt and others: see the Word document [S&P Ratings Criteria Guide.pdf] posted on D2L in the Content section). It would be advisable to review the most current 10-K and/or 10-Q data – this should be available from the companies’ web sites, the SEC’s web site (Edgar), or other financial web sites (i.e. FactSet, Morningstar, Yahoo Finance, Google Finance, etc).
4. Utilizing the results of your financial analysis and the information contained in the S&P Ratings Criteria.doc and other sources, you should
You can use a variety of sources of information to conduct your credit analysis (i.e. FactSet, Morningstar, Bloomberg, Moody’s, Investinginbonds.com, etc.). In all cases you must properly cite the references that you used. Your credit analysis is expected to be between 5-7 pages in total (in addition to any information contained in your appendix).