The BNP case is constructed to provide insight to a typical task in coverage and challenge the students analytical thinking, ultimately forming an opinion ahead of committing to a transaction. It is based on an existing client for which we performed a credit and commercial analysis ahead of committing to financing. Each group will represent a bank with different characteristics (capabilities, risk-appetite, etc.), for which a conclusion shall be made if your group has appetite for this particular transaction.

 

Firstly, you will analyze the credit profile of the client. The analysis contains a qualitative approach (liquidity needs, profitability, business profile (SWOT), etc.) as well as a quantitative approach including analyzing various relevant metrics and constructing a forecast. For a comprehensive analysis, relevant peers are considered. Next to the credit risk, you need to take a commercial view (bank products we can sell) ahead of engaging with the client, as a bank wants to be rewarded for its capital commitment. You will be challenged to think of various products (e.g., hedging needs, capital markets angles, etc.) which may be applicable, depending on your bank capabilities and your interpretation of the client’s profile.