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credit

Assess credit risk and generate structured credit analysis packages.

2|Updated Mar 26, 2026
Search Tags:#default-probability#altman-z-score#credit-analysis#recovery-rate#cds-basis#merton-model#distressed-debt
One-click install
npx skills add https://github.com/tmcga/alpha-stack --skill credit
Or copy as Structured Prompt for Agent▼
Please help me install this Agent Skill.
Skill: credit
Source: https://github.com/tmcga/alpha-stack/tree/main/skills/credit
Command: npx skills add https://github.com/tmcga/alpha-stack --skill credit

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

Provide rigorous, end-to-end credit analysis across investment-grade, high-yield, and distressed debt, delivering quantified default risk, expected losses, and recovery estimates to guide disciplined investment decisions.

Core Features & Use Cases

  • Altman Z-Score and Merton distance-to-default for default probability estimation.
  • Covenant analysis with maintenance and incurrence checks, headroom stress tests, and leverage/coverage review.
  • Relative value and scenario analysis including CDS/bond basis, spread decomposition, and peer benchmarking.
  • Recovery waterfall modeling by seniority under various enterprise value scenarios, plus distressed restructuring timelines.
  • Portfolio risk and contagion checks with CDS-implied risk, market-implied PD triangulation, and sensitivity analyses.

Quick Start

Analyze a given issuer's credit thesis by compiling PD, LGD, covenant posture, and relative value in a single credit analysis package.

Frequently Asked Questions about credit

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I estimate default probability using Altman Z-Score and Merton model?▼

Default probability estimation triangulates Altman Z-Score and Merton distance-to-default with market-implied PD to quantify issuer credit risk. This structured approach produces a comprehensive credit analysis package.

What is the best way to model recovery rates and distressed debt waterfalls by seniority?▼

Recovery rate modeling calculates expected losses by mapping recovery waterfalls across debt seniority under various enterprise value scenarios. This yields structured outputs for distressed debt restructuring timelines.

Can I use this credit analysis approach for both investment-grade and high-yield issuers?▼

Credit analysis scales across investment-grade, high-yield, and distressed debt by assessing leverage, coverage, and liquidity. It generates a disciplined buy, hold, or sell thesis tailored to each issuer.

How do you evaluate CDS basis trades and relative value in credit analysis?▼

CDS basis evaluation compares spread decomposition and peer benchmarking to identify relative value opportunities. It outputs risk metrics and contagion checks using CDS-implied risk and market-implied PD triangulation.

What goes into a covenant analysis with maintenance and incurrence checks?▼

Covenant analysis reviews maintenance and incurrence checks, applies headroom stress tests, and evaluates leverage and coverage ratios. This determines an issuer's covenant posture and potential default vulnerabilities.

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