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elearning > Credit linked notes
Learn about the following:
How credit linked notes work. Why issuers and investors use credit linked notes. The main risks related to credit linked notes
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Course Summary
- 30 minutes
- 7 question multiple choice
- How credit linked notes work
- Why issuers and investors use credit linked notes
- The main risks related to credit linked notes
Credit Linked Notes - the details
1. Credit linked notes
- A medium term note and a credit default swap
- How a bank originates the CLN
- Risk and return for the investor
- How the bank originator reduces funding costs
- Why investors buy CLNs
2. Credit linked notes – the risks
- No credit event, repayment
- Credit event
- Final terms
- The investor’s loss
- Why the bank is hedged
- Investor’s credit risk on MTN
- Liquidity, fair-value and operational risks
3. Summary
4. Test
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