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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

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

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