Credit Derivatives

This credit derivatives training course is intended for people who would like to know more about the main credit derivative products. This includes what they are, how they work, how the bank uses them as well as the key terms to a transaction. The course is an introduction as well as prior knowledge of credit products is not required.Topics of Study1. Credit Derivatives Overview2. What's credit risk3. What's a credit derivative4. The Need for Credit Derivatives5. Market Description: Participants6. Market Description: Geography7. Present Constraints as well as the Future8. Credit Default Swaps9. Introduction to CDS10. CDS Mechanics11. CDS identification: specifications to be provided12. The economics of a CDS13. Differences from Asset Swaps - Points Upfront CDS14. Valuation of Credit Default Swaps15. Overview of challenges facing valuation of credit derivatives16. Valuation of CDS17. Modeling Default Probabilities18. Conceptualizing CDS MTM19. Risky Cash Flows20. Determining Recovery Rates21. Risky duration approach to MTM22. An Example of Unwinding Credit Default SwapsThe course will provide you with an introduction to: 1. The main credit derivative products, what they are as well as how they work 2. The definitions used in this market as well as what they mean 3. What happens if there is a Credit Event 4. How credit default swaps can be valued 5. How dealers use credit derivatives as well as structure trades 6. Operational issues as well as the settlements process