Credit Derivatives and Structured Credit Trading. Revised Edition. Wiley Finance

  • ID: 2244192
  • Book
  • 512 Pages
  • John Wiley and Sons Ltd
1 of 4
Over the past few decades, I have watched with great interest the development of derivatives in general, and more recently credit derivatives. Instruments can be used, and misused. Derivatives may be used for hedging and trading in volatilities; at the same time, they may be used for excessive risk taking with inadequate capital. The 2008 global financial crisis resulted from control failures accompanied by traders making bets on a variety of risks based on models that had been validated only in good times. Stressful times act as the acid test for lots of instruments and assumptions, and I am sure credit derivatives will survive this test. Anyone concerned or interested in credit derivatives will find Vinod Kothari s book useful and comprehensive. Among other things, it also highlights the risks and mechanisms for reducing these using credit derivatives.

Frank J. FabozziProfessor in the Practice of Finance. Yale School of ManagementEditor, Journal of Portfolio Management

Vinod Kothari s book provides the reader with a necessary macro and micro picture of the credit derivatives market. Without an appreciation for each piece of the jigsaw puzzle that is credit derivatives, it is impossible to have an understanding of the whole. This has never been truer than right now in the midst of the greatest financial turmoil in a century. Some blame credit derivatives for either causing or amplifying the crisis; others point out that one of the main tools for fixing the impotency of the banking sector is credit derivatives. To varying degrees, all are correct and therefore few can afford to be connected to the credit markets without a thorough understanding of credit derivatives. Vinod provides a comprehensive picture of the drivers behind the market supplemented by a detailed explanation of why institutions get involved. The extensive product details and the accompanying explanations of legal, regulatory, accounting and operational issues complete the picture and arm the reader well for a foray into this crucial sector of the credit markets.

Robert ReochDirector, New College Capital Ltd.

Credit derivatives have been the most spectacular financial product of the past 15 years. From an obscure product, traded by professional in small amounts, they have transformed into a mammoth product with notional amounts estimated to be about US$60 trillion (up from US$50 billion in 1994). Vinod Kothari s new book explains the products in detail and explores the various trading strategies. It does so in an objective and scientific manner. I highly recommend the book to anyone interested in the topic.

Izzy NelkenPresident, Super Computer Consulting, Inc. 

READ MORE
Note: Product cover images may vary from those shown
2 of 4
Foreword.

Preface.

PART 1 MARKET, INSTRUMENTS AND MOTIVATIONS.

Chapter 1: Credit derivatives: Structure, evolution, motivations, and economics.

Chapter 2: Credit derivatives: Market, evolution, and current status.

PART 2 SINGLE–NAME INSRTUMENTS.

Chapter 3: Credit default swaps.

Chapter 4: Total rate of return swaps.

Chapter 5: Credit–linked notes.

Chapter 6: Credit default swaps on asset–backed securities and derivatives exposures.

Chapter 7: Loan–only CDS.

Chapter 8: Credit derivatives options and volatility trades.

Chapter 9: Equity default swaps, recovery swaps and other exotic products.

PART 3 PORTFOLIO PRODUCTS.

Chapter 10: Portfolio credit derivatives and introduction to structured credit trading.

Chapter 11: Introduction to collateralized debt obligations.

Chapter 12: Index trades.

Chapter 13: Single–tranche synthetic CDOs, CPDOs, and other CDO innovations.

Chapter 14: CDO case studies.

Chapter 15: Credit derivative product companies.

PART 4 PRICING AND VALUATION OF CREDIT DERIVATIVES.

Chapter 16: Approaches to quantification of credit risk.

Chapter 17: Pricing of a single name credit derivative.

Chapter 18: Pricing of a portfolio credit default swap.

PART 5 LEGAL, REGULATIORY, OPERATIONAL, TAX AND ACCOUNTING ASPECTS.

Chapter 19: Legal aspects of credit derivatives.

Chapter 20: Documentation for credit derivatives.

Chapter 21: Taxation of credit derivatives.

Chapter 22: Accounting for credit derivatives.

Chapter 23: Regulatory capital and other regulations on credit derivatives.

Chapter 24: Operational issues.

Chapter 25: Credit derivatives terminology.

Index.

Note: Product cover images may vary from those shown
3 of 4

Loading
LOADING...

4 of 4
Vinod Kothari
Note: Product cover images may vary from those shown
5 of 4
Note: Product cover images may vary from those shown
Adroll
adroll