Dates

7 April 2010
9 November 2010

Course Overview

At the end of this seminar delegates will be familiar with the basic credit derivatives, their raison d’être, structures and pricing factors.

They will appreciate the risks transferred by these products (and the residual risks that are not).
In addition, delegates will appreciate the uses of credit derivatives for corporate financing structures and the circumstances in which they might be utilised for hedging risk, both from a client standpoint and from that of the corporate banker.

Course Content
 
 Overview
Historical development,
Current diversity & expected growth
Market size
The participants

 Reasons for the Creation & Development of the Credit Derivative Market
Need for investment uplift
Greater awareness of credit risk
Better tools to assess credit risk
Perceived opportunities for arbitrage
Need to diversify and / or dissipate credit risk
Liquidity issues / opportunities
Disappearance of other trading opportunities

 Understanding the Concept of Credit Risk and Credit Derivatives
Risk splitting
The roles of the protection buyer and protection seller
Constraints of transactions
The role of the intermediaries

 Analysis of Credit Spreads
Calculation of credit spreads
Construction of credit spread curves
The three main variables: credit spread, default probability and
  recovery value
Rating agencies
History of default rates

 The Basic Instruments
The Antecedents to Credit Derivatives
Credit default swaps
Total return swaps

 Other Products
Contingent Default Swaps
Dynamic Default Swaps
Sale & TRS packages
Equity TRS Leveraged notes
First Loss Credit Swap
Credit-linked notes
Cross Guarantees
Spread Options
Credit Put Option
Substitution Option

 The Credit-Linked Note Market-Place
Structures
Understanding the buyer
Elements in the production process
Vehicles for issuance

 Risks in Credit Derivatives
Practical Issues
Moral Risk
Hidden exposures
Other risks

IN ADDITION TO THE PUBLIC DATES ABOVE, THIS COURSE CAN ALSO BE TAILORED TO YOUR REQUIREMENTS AND DELIVERED IN-HOUSE FOR YOU.

PLEASE CIRCULATE THIS PDF AMONG YOUR COLLEAGUES!

IF YOU HAVE ANY QUESTIONS ABOUT THIS SEMINAR PLEASE WRITE TO US AT post@redcliffetraining.co.uk


Please click here if you wish to be added to our mailing list for notification of forthcoming training courses