Structured Credit Funds (FIDC) Course

Lesson 1 • Structured Credit vs. Traditional Funds

Contrasts structured credit funds with conventional investment funds on governance, liquidity, and return profiles. Sets expectations for the FIDC-specific study ahead.

Lesson 2 • Securitisation Mechanics Explained

Explains how asset pools are packaged and transferred to special-purpose vehicles. Grounds learners in the cash flow logic underpinning all structured credit funds.

Lesson 3 • Key Parties and Their Roles

Identifies originators, servicers, trustees, and rating agencies within structured deals. Clarifies accountability and incentive alignment across the fund lifecycle.

Lesson 4 • Credit Markets and Instruments Overview

Maps the credit market landscape and key instrument types. Connects foundational vocabulary to structured fund architecture used throughout the course.

Lesson 1 • Governing Documents and Bylaws

Examines the fund regulation document, quota holder agreements, and service contracts. Learners learn which provisions are mandatory vs. discretionary.

Lesson 2 • Quota Classes and Investor Rights

Distinguishes senior and subordinate quota classes and their respective cash flow priorities. Links quota structure to credit enhancement and investor protection.

Lesson 3 • FIDC Defined and Classified

Introduces the FIDC as a distinct closed-end fund category focused on credit receivables. Positions it within the broader structured finance ecosystem.

Lesson 4 • Eligible Receivables and Eligibility Criteria

Defines what receivables qualify for FIDC acquisition and the criteria that govern ongoing eligibility. Connects asset quality gates to portfolio performance.

Lesson 1 • Originator Assessment and Due Diligence

Establishes criteria for evaluating originator financial health, operational capacity, and underwriting standards. Feeds directly into portfolio quality analysis.

Lesson 2 • Portfolio Composition and Concentration

Analyses how diversification rules and concentration limits shape portfolio construction. Connects asset mix decisions to credit enhancement adequacy.

Lesson 3 • Asset Transfer and True Sale Analysis

Examines legal and structural requirements for a valid true sale of receivables to the FIDC. Ensures learners can identify transfer risks that affect fund integrity.

Lesson 4 • Receivable Types and Characteristics

Surveys commercial, consumer, and trade receivables, their cash-flow profiles, repayment terms, and risks. Enables learners to match each asset class to fund strategy, yield targets, and credit quality.

Lesson 1 • Credit Risk Fundamentals for FIDCs

Defines probability of default, loss given default, and exposure at default in the FIDC context. Anchors all subsequent portfolio risk analysis.

Lesson 2 • Credit Enhancement Sizing and Adequacy

Integrates stress test and concentration outputs to determine required credit enhancement levels. Learners can justify enhancement structures to rating agencies and investors.

Lesson 3 • Delinquency and Default Measurement

Teaches how to track, bucket, and interpret delinquency and default data across the portfolio. Connects measurement to trigger and covenant design.

Lesson 4 • Concentration and Correlation Risk

Quantifies how obligor, sector, and geographic concentrations amplify portfolio losses. Directly informs diversification rules and tranche sizing.

Lesson 1 • Trigger Mechanisms and Early Amortisation

Explains performance triggers that redirect cash flows or accelerate repayment. Learners learn to design and test triggers that protect senior investors.

Lesson 2 • Waterfall Architecture and Priority Rules

Defines the sequential payment rules that govern how cash is distributed among fund parties. Learners map each waterfall step to a specific fund obligation.

Lesson 3 • Cash Flow Projection Fundamentals

Builds the logic for projecting collections, prepayments, and defaults over the fund life. Establishes the input framework for all waterfall modeling.

Lesson 4 • Sensitivity and Scenario Analysis

Applies base, stress, and upside scenarios to the waterfall model to assess tranche performance. Connects model outputs to investment decision-making.

Lesson 1 • Rating Agency Methodology for FIDCs

Decodes how agencies assess asset quality, structural protections, and counterparty risk. Enables learners to anticipate agency concerns during deal structuring.

Lesson 2 • Ongoing Surveillance and Rating Actions

Covers how agencies monitor rated tranches post-closing and what triggers rating changes. Learners learn to manage surveillance relationships proactively.

Lesson 3 • Investor Reporting and Transparency

Defines the content, format, and frequency of investor reports for FIDC quota holders. Connects reporting quality to investor confidence and secondary market liquidity.

Lesson 4 • Managing Investor Expectations and Relations

Addresses how fund managers handle underperformance, covenant breaches, and investor queries. Builds skills for maintaining trust through adverse periods.

Lesson 1 • Amortisation and Wind-Down Execution

Guides the transition from revolving to amortisation phase and final fund liquidation. Learners learn to manage investor expectations and cash flow timing during wind-down.

Lesson 2 • Fund Launch and Onboarding Process

Details the steps from regulatory approval to first asset acquisition and quota issuance. Learners understand the critical path for a successful fund launch.

Lesson 3 • Technology and Data Infrastructure

Identifies the systems required for receivable tracking, reporting, and compliance monitoring. Learners evaluate technology choices against operational scale and complexity.

Lesson 4 • Daily and Monthly Operational Routines

Maps recurring operational tasks including NAV calculation, cash reconciliation, and reporting. Builds operational discipline essential for fund integrity.

Lesson 1 • ESG Integration in FIDC Structuring

Incorporates environmental, social, and governance criteria into asset eligibility and fund design. Learners evaluate ESG-linked triggers and green receivable frameworks.

Lesson 2 • Multi-Originator and Multi-Seller Structures

Designs FIDCs that aggregate receivables from multiple originators with distinct risk profiles. Learners manage the added complexity of cross-originator eligibility and reporting.

Lesson 3 • Non-Standard and Esoteric Asset Classes

Explores structuring FIDCs around non-traditional receivables such as royalties, litigation finance, and future flows. Extends credit analysis skills to illiquid and complex assets.

Lesson 4 • Leverage and Repo Financing in FIDCs

Examines how FIDCs use leverage and repo facilities to enhance returns and manage liquidity. Learners assess leverage impact on tranche risk and fund stability.