Module 3 · Coming soon
Private Credit
Direct lending, floating rate maths and what happens when covenants break.
9 episodes2h 45mEntry · Intermediate · Advanced
Course on The Alternatives
Private credit sells yield. Whether that yield survives depends on documents most investors never read: covenants, intercreditor agreements and the payment waterfall.
This module runs from the basics of direct lending to unitranche waterfall modelling and covenant breach workouts.
What you will learn
- Compare direct lending with traditional bank debt on real terms
- Calculate floating rate income, OID and net yield after fees
- Read covenants and spot the ones that actually protect you
- Model a unitranche waterfall and a covenant breach workout
Episode curriculum
Entry
- Direct lending versus bank debt17m
- Senior secured loans and the capital stack19m
- Covenants: maintenance versus incurrence18m
Intermediate
- Floating rate mechanics and base rates21m
- Original issue discount and effective yield20m
- Fee drag and the true net return18m
Advanced
- Intercreditor dynamics24m
- Covenant breach workouts26m
- Unitranche waterfall modelling30m