Credit derivatives trading investing and risk management pdf

9.43  ·  8,899 ratings  ·  495 reviews
credit derivatives trading investing and risk management pdf

Chaplin Geoff. Credit Derivatives: Trading, Investing and Risk Management [PDF] - Все для студента

In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset , index , or interest rate , and is often simply called the " underlying ". Most derivatives are traded over-the-counter off-exchange or on an exchange such as the New York Stock Exchange , while most insurance contracts have developed into a separate industry. In the United States , after the financial crisis of —, there has been increased pressure to move derivatives to trade on exchanges. Derivatives are one of the three main categories of financial instruments, the other two being stocks i. The oldest example of a derivative in history, attested to by Aristotle , is thought to be a contract transaction of olives , entered into by ancient Greek philosopher Thales , who made a profit in the exchange. Derivatives are contracts between two parties that specify conditions especially the dates, resulting values and definitions of the underlying variables, the parties' contractual obligations, and the notional amount under which payments are to be made between the parties.
File Name: credit derivatives trading investing and risk management pdf.zip
Size: 98953 Kb
Published 13.01.2019

CFA Level I: Derivatives - Risk Management Applications of Option Strategies LOS A

You are currently using the site but have requested a page in the site. Would you like to change to the site? Geoff Chaplin.

Credit default swap

A credit default swap CDS is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default by the debtor or other credit event. The buyer of the CDS makes a series of payments the CDS "fee" or "spread" to the seller and, in exchange, may expect to receive a payoff if the asset defaults. In the event of default, the buyer of the CDS receives compensation usually the face value of the loan , and the seller of the CDS takes possession of the defaulted loan or its market value in cash. However, anyone can purchase a CDS, even buyers who do not hold the loan instrument and who have no direct insurable interest in the loan these are called "naked" CDSs. If there are more CDS contracts outstanding than bonds in existence, a protocol exists to hold a credit event auction. The payment received is often substantially less than the face value of the loan. Credit default swaps in their current form have existed since the early s, and increased in use in the early s.

This content was uploaded by our users and we assume good faith they have the permission to share this book. If you own the copyright to this book and it is wrongfully on our website, we offer a simple DMCA procedure to remove your content from our site. Start by pressing the button below! No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher. Designations used by companies to distinguish their products are often claimed as trademarks.

Navigation menu

To browse Academia. -

.

.

.

0 COMMENTS

Leave a Reply

Your email address will not be published. Required fields are marked *