Join Mailing List

For latest news and information about Treasury and Financial Markets, enter your details below:

elearning > Credit linked notes

Print Preview Send to a Friend Share

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

Buy the full e-learning course now for just £14.95

If you have already purchased this e-learning course, login to view it.

Course Summary

Credit linked notes menuCredit linked notes structureCredit linked notes cash funded

Credit linked notes risksCredit linked notes risks 2Credit linked notes risk 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

Related Documents

Registration RequiredQuick Guides > Credit Linked Notes 100% relevant

Payment RequiredCredit valuation adjustment 32% relevant

25th March 2017

Derivatives are traditionally valued by taking the expected future cash flows and then discounting them in accordance with interest rates to give today’s value (present value). Implicit is the assumption that the derivative contract will run to its contractual date and all the cash flows will be paid and received. However, in the real world this may not occur. The counterparty may default.

Free to ViewShort courses>Index linked bonds & swaps 30% relevant

Payment RequiredCredit risk in treasury 29% relevant

25th March 2017

The Treasury function has several roles. At the highest level these include hedging and trading. The risks that are incurred are • Market risk (Interest rate & foreign exchange risk) • Liquidity risk • Operational risk • Credit risk What sort of things create credit exposures?

Free to ViewShort courses>Credit default swaps 28% relevant

Registration RequiredCredit Default Swaps Update 28% relevant

12th August 2014

Since I wrote my earlier quick guide to credit default swaps (CDS) there have been changes to this market. These occurred in 2009 and are referred to as Big Bang. A summary is below.