Credit Derivatives: Application, Pricing, and Risk Management

The market for credit derivatives—-financial instruments designed to transfer credit risk from one party to another—-has grown exponentially in recent years, with volume expected to reach more than $4.8 trillion by 2004. With demand increasing from the private sector for finance professionals trained in the opportunities—-and dangers—-inherent in this fast–changing market, finance courses are already springing up to meet this need. Credit Derivatives: * Explains the field of credit derivatives to business students with a background in finance * Cites real–world examples throughout, reinforced by end–of–chapter questions and internet links to pricing models * Provides a concise overview of the field that is ideal for instructors seeking to supplement traditional derivatives course material, as well as those looking to offer a stand–alone course on credit derivatives.