Retrograde Analysis

To grasp credit transactions or overall credit market trends, it's useful to trace back to the origin. This is called Retrograde Analysis, a method that deciphers actions in reverse using set rules and logic. Like chess, credit structuring operates within fixed legal and structural limits.

Big picture topics on credit of the Past

Real Options: When My Base Case Is Your Worst Case

August 13, 2023
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Banks
Ann Rutledge

The loan agreement between Party A and Party B is vague and risky. Brokered via social media, the deal involves a $250 million loan for a green energy project. Key feasibility details are missing, and legal complexities are ignored. The suspicious elements include a $17.5K upfront fee from Party B to Party A, which Party A keeps if the deal falls apart in 90 days. The agreement appears more like a risky gamble than a secure loan.

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