Introduction to Credit Derivatives

This one day course assumes that participants have no or minimal knowledge of credit derivatives. The instruction is interactive and will involve exercises and articles about recent developments in credit derivatives. Participants will work individually and in teams.

02-May-2012 -- 02-May-2012New YorkUSD$1575
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Wed Level: Basic

07-Dec-2012 -- 08-Dec-2012St. PetersburgUSD$1575
NY Institute of Finance - St. Petersburg9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Fri Level: Basic

CPE CREDITS
7.0
Regulators, compliance, operations staff.
No advance preparation required.
Students will be able to:
  • Define credit risk
  • Identify features of total return swaps and credit defaults
  • Examine how credit derivatives are used by financial institutions in their hedging strategies
  • Evaluate how credit derivatives give rise to market, credit, legal and operational risks
  • Define what minimum risk management practices banks should have in place for the use of credit derivatives
Knowledge of derivative contracts.
"The course instructor was very knowledgeable."
"Very informative class; clear and concise examples."
"Instructor was able to explain material at an introductory level. The course was very helpful, and I learned a good deal about credit derivatives."
"The instructor was able to make the subject matter relatable and very clear."
Requirements:
Financial calculator needed
Module I - Introduction
  • What is credit risk?
  • Purpose of credit derivatives
  • Market participants
  • Role of regulators

Module II - The Credit Derivatives Family

  • ISDA
  • Description of vanilla vs. structured derivatives
  • Characteristics shared in the family of credit derivatives

Module III - Total Return Swaps

  • Characteristics
  • Exercise

Module IV - Credit Default Swaps

  • Characteristics - vanilla, binary, basket and portfolio CDSs
  • Team exercise

Module V - Risks and Risk Management of Credit Derivatives

  • Credit
  • Operations
  • Market
  • Liquidity
  • Legal
  • Risk Management
  • Influence of Basel II on credit derivatives and risk management

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.