Course Instructor
Mr. HUI, Samuel & Mr. WONG, Ivan
Course Description
This course covers the key elements of private credit within the alternative asset class. Private credit has become a significant component of alternative investments and an important source of financing for companies that may not have access to public capital markets or large institutional loans. The course emphasizes the importance of aligning financing solutions with the specific needs and risk profiles of middle-market companies as well as the investment options of investors in this alternative asset class.
Course Learning Outcomes
CLO1. Comprehend the strategic purpose behind private credit facilities and evaluate when a tailored lending solution is appropriate. This includes assessing the borrower’s unique financial profile and the prevailing market conditions.
CLO2. Analyze various repayment strategies and risk profiles.
CLO3. Apply the concepts of security, collateral valuation and margined lending, including calculating margin requirements to mitigate credit
risk.
CLO4. Differentiate among various private credit instruments and to identify the most suitable instrument based on the financing objectives.
CLO5. Demonstrate the ability to investigate current market trends, investor expectations, and economic factors that shape the private credit landscape, providing a foundation for informed lending decisions.
CLO6. Assess the relative position of private credit as an alternative asset class and the role it plays in asset allocation from risk and return perspective.
Course Prerequisite(s)
FINA1310: Corporate Finance
Offering Semester in 2025-2026
First Semester
Major/Minor (Course Category)
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