Short courses>Credit derivatives

Credit derivatives - learn the following in 3 hours

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Introduction

• Market statistics/why credit trading is growing

Credit default swaps, (CDS)

• How a CDS trade works
• The main terms used
• What happens if there is a credit event

How CDS are used

• Simple trading strategies
• Risk transfer for structured transactions

 Credit Indices

• What they are, how they work & why they are used
• The components of the basket
• Premium payments

 Collateralised debt obligations, (CDOs)

• Market background-why they have been popular
• The tranche structure
• Subordination & attachment points
• Valuation difficulties & risks