What you will explore
Learning objectives
- Understand the role of collateral and LTV.
- Connect a credit metric to the underlying business question.
Module 01 / Sample lesson
Understanding Loan-to-Value and Credit Risk
Explore the relationship between loan size, collateral value and the margin of protection.
Loan-to-value (LTV) expresses the size of a loan relative to the value of the underlying collateral. LTV = loan amount ÷ collateral value × 100.
In a synthetic example, a $60m loan secured against a $100m property has an LTV of 60%. If the property value falls to $80m while the loan remains unchanged, LTV rises to 75%.
LTV is one perspective on credit risk. Cash flows, debt service, valuation quality and loan terms also matter. This example is educational and is not a lending recommendation.
Module 02 / Planned
From metrics to credit judgement
A planned lesson on interpreting ratios in context.
Supporting resources
Reference materials and downloadable PDFs will be added as the course develops.
Sample lessons use simplified synthetic examples for education. They do not represent a real borrower, institution or lending recommendation.