Drafting Credit Memos Creates structured credit memos with borrower analysis, risk assessment, and recommendation justification. Use when writing credit memos, documenting credit decisions, or presenting credit recommendations.
职业
分类 销售与营销 When To Use
Recommending a new bond purchase, loan participation, or credit facility for a portfolio or credit committee
Documenting the rationale for increasing, reducing, or maintaining an existing credit exposure
Presenting a credit opinion on a new issuer or counterparty for internal approval
Refreshing an annual or semi-annual credit review on a held position
Supporting a rating change recommendation (upgrade, downgrade, or watch placement)
Issuer/borrower identity : Legal name, ticker, CUSIP/ISIN, sector classification (GICS or internal taxonomy)Financial statements : Minimum three years of audited financials plus latest interim period; confirm GAAP vs. IFRS basisCapital structure detail : Debt schedule with maturities, coupon rates, seniority, covenants, and guarantor structureMarket data : Current spread levels (OAS, Z-spread, or CDS), comparable issuer spreads, recent price actionRating agency views : Moody's/S&P/Fitch ratings, outlooks, and most recent rating action commentary
快速安装
Drafting Credit Memos npx skillvault add CaseMark/casemark-skills-skills-finance-drafting-credit-memos-skill-md
星标 12
更新时间 2026年3月5日
职业
Industry context : Sector fundamentals, competitive positioning, key risk drivers (commodity exposure, regulatory, cyclicality)
Transaction specifics (if new issue): Proposed terms, use of proceeds, pricing guidance, syndicate structure
Portfolio context : Current exposure, concentration limits, mandate guidelines, and any investment policy constraints [VERIFY]
Workflow
Confirm scope and recommendation direction
Clarify whether memo is for new investment, annual review, or event-driven reassessment
Identify the target audience (credit committee, portfolio manager, trading desk)
Determine recommendation type: Buy / Hold / Sell / Avoid, with size and tenor guidance
Build the issuer profile
Summarize business description: revenue mix, geographic footprint, market position
Identify the 3-5 key credit drivers (e.g., leverage trajectory, margin stability, asset quality, liquidity, management track record)
Note ownership structure and any parent/subsidiary support or structural subordination
Conduct financial analysis
Compute and trend core credit metrics: Debt/EBITDA, Interest Coverage (EBITDA/Interest), FFO/Debt, FCF generation
Adjust for off-balance-sheet obligations, operating leases (if pre-IFRS 16 comparisons needed), and non-recurring items — flag each adjustment explicitly
Stress-test metrics under a downside scenario (revenue decline of X%, margin compression of Y bps) and identify the break-even deterioration level
Compare metrics against rating agency medians for the assigned rating category [VERIFY agency-specific methodology]
Assess capital structure and recovery
Map the priority-of-claims waterfall: secured → senior unsecured → subordinated → equity
Estimate recovery prospects by tranche using enterprise value or asset-based approach
Flag covenant protections or weaknesses (incurrence vs. maintenance tests, restricted payments baskets, change-of-control provisions)
Evaluate relative value
Compare spread to sector peers at similar rating, maturity, and seniority
Assess whether current spread compensates for identified risks vs. comparables
Note any technical factors: index eligibility, supply/demand dynamics, event catalysts
Formulate recommendation
State recommendation clearly: action (Buy/Hold/Sell), notional size, target spread or price, and investment horizon
Summarize supporting thesis in 2-3 sentences
List key risks to the recommendation and monitoring triggers (e.g., leverage exceeding 4.5x, downgrade to below-IG)
Draft the memo
Use the output structure below
Write in direct, declarative style — lead each section with the conclusion, then support with data
Output Structure the credit memo with these sections:
Executive Summary — Recommendation, issuer name, rating, key metric snapshot, and 2-3 sentence thesisIssuer Overview — Business description, revenue breakdown, competitive position, ownershipIndustry & Macro Context — Sector trends, regulatory environment, cyclical positioningFinancial Analysis — Historical and projected metrics table, adjustment notes, stress scenario resultsCapital Structure & Recovery — Debt maturity profile, priority waterfall, covenant summaryRelative Value — Spread comparison table vs. peers, technical factorsRisk Factors — Ranked list of 3-5 material risks with severity assessmentRecommendation & Monitoring — Actionable conclusion, position sizing rationale, triggers for reviewAppendix — Detailed financial tables, source list, rating history
Quality Checks
All credit metrics tie back to sourced financials; no computed ratio is left without its inputs shown
Recommendation is internally consistent — risk factors do not contradict the thesis without explicit acknowledgment
Covenant analysis references actual indenture or credit agreement language, not summaries [VERIFY document availability]
Peer comparison uses issuers of genuinely comparable credit profile (same sector, similar rating band, comparable maturity)
Stress scenario assumptions are stated and plausible, not arbitrary round-number shocks
Spread and pricing data carry timestamps — stale data is flagged
Portfolio limit compliance is confirmed against current mandate or IPS guidelines [VERIFY specific fund constraints]
No rating agency content is reproduced verbatim beyond fair-use thresholds; paraphrase and cite
Inputs To Gather
Mark any unverified data points with [VERIFY] 销售与营销
Open a Pull Request Open a pull request with proper PR template, test coverage, and review workflow. Guides agents through creating a PR that follows repo conventions, ensures existing behaviors aren't broken, covers new behaviors with tests, and handles review via bot when local testing isn't possible. TRIGGER when user asks to "open a PR", "create a PR", "make a PR", "submit a PR", "open pull request", "push and create PR", or any variation of opening/submitting a pull request.
Significant-Gravitas
Drafting Credit Memos | Skills Pool