This course takes you through the mechanics of the most basic form of credit derivative trade (the credit default swap) and builds on this to describe a number of other credit derivatives. The course outlines the typical applications of the different credit derivatives in the market and the associated risks, along with the pricing of these instruments and the legal/regulatory issues involved in their use.
Objectives In this course, you will explore: - the fundamentals of credit derivatives and the different types available in the market - the legal and regulatory issues surrounding the use of credit derivatives - the methods used to price credit derivatives - the structure, application and valuation of credit default swaps, total rate of return swaps, credit-linked notes, credit spread options, basket default swaps and synthetic CDOs - the use of arbitrage to exploit mispricings between a company's equity and debt instruments
Prerequisite Knowledge A good understanding of fixed income and derivatives is assumed.
Learner Profile This course is designed for: - new or recent recruits to banking and financial organizations - risk management personnel - treasury department staff - operations and support staff - finance and accounting staff - IT staff - compliance and regulatory staff
