# The Credit Investor: companion files

By Julian R. Sterling. These files are served at julianrsterling.com/creditinvesting. No sign-up, no email is asked for.

The workbooks follow one fictional investor and one fictional credit portfolio of $500,000 in seventeen lines for twelve quarters. Every issuer, fund and BDC in them is fictional. The default probabilities, recoveries, fees and paths are the book's assumptions, not market statistics. Nothing here is investment, legal or tax advice.

## What is in the pack

| File | What it is | Where in the book |
|---|---|---|
| `Credit_Yield_and_Loss.xlsx` | The yield measures of Harrowgate Pneumatics (current yield, yield to maturity, spread, pull to par), the default and recovery assumptions with expected and cumulative losses, the high-yield sleeve by number of defaults and recovery, hold or sell, duration and convexity from the cash flows, and the CLO tranche grid. | Part I and Chapters 6 and 8 |
| `Credit_Vehicles.xlsx` | The bond ladder and the six high-yield bonds line by line, the loan fund, the three listed BDCs (income stack, coverage, NAV, discount, return decomposition), the interval fund (fee stack, NAV, coverage, fee dollars), the proration table and the gate, the tax illustration. | Part II |
| `Credit_Portfolio.xlsx` | The seventeen lines at purchase with their displayed and expected yields, every line's cash flows quarter by quarter under the base case and each stress scenario, the IRRs, the line-by-line shortfall and the quarterly review figures. | Part III |
| `Blank_Templates.xlsx` | Four working sheets with every input empty: a line ledger, a yield bridge for one bond, a fee stack for one leveraged fund or BDC, and a quarterly review with your own triggers. | Chapters 2, 3, 13, 15 and 18 |
| `Credit_Investor_60_Minute_Test.xlsx` | A separate, simpler case to work against the clock: build the answers, then open the Score sheet and the Answer Key. | The whole book |

## Recommended order

1. Open `Credit_Portfolio.xlsx` and read the Base sheet: the portfolio displayed 7.46 percent on the day of purchase (7.68 percent as an effective rate), was expected to earn 6.31 percent, and earned 6.02 percent.
2. Go back to `Credit_Yield_and_Loss.xlsx` for Part I, then `Credit_Vehicles.xlsx` for Part II, chapter by chapter.
3. Take the 60-minute test once you have read Part II.
4. Use `Blank_Templates.xlsx` on your own lines. Save a copy first.

## Working rules

- Yellow cells with blue type are inputs; grey cells are formulas. Change an input and every figure that depends on it moves.
- Each worked workbook ends with a Checks sheet that sets every figure the book prints beside the live cell that computes it, with the numeric difference and a tolerance of half a unit of the last printed digit. The overall status reads PASS only if every check passes; an error counts as a failure. Read the difference, not only the word.
- Returns are IRRs of quarterly cash flows compounded to a year. Screen yields are quoted rates; the book explains why the two differ slightly.
- No macros, no circular references, no external links, nothing hidden or locked. The files recalculate in Excel, LibreOffice or Google Sheets.

Julian R. Sterling, julianrsterling.com/creditinvesting