Credit Derivatives 1 Risk Management Trading and Arbitrage
Training
Provided by London Financial Studies
Course Outline
Credit derivatives are integral to making sense of today?s markets. This two-day course provides a comprehensive view of how credit derivatives are used for risk management, to create profitable opportunities through trading and arbitrage, and to create liquidity. It will provide an in-depth description of all credit products including Default Swaps, Total Return Swaps, Credit Linked Notes, CDOs and CLOs as well as address the differing motivations and historical development of this market.
More than half of the seminar is devoted to practical small group sessions. These intensive exercises include case studies and simulations. Participants will be able to take away worked examples for use after the course.
New Case Study: the evolving credit crisis and its implications for the future
Understand why the "crunch" ocurred and the role that credit derivatives played in the development of the situation and the various roles that credit derivatives will play in solving the crisis.
* How credit derivatives can help financial market participants mitigate the effects and recover from the aftermath of recent volatility
* How firms and investors are using credit derivatives to profit from turmoil in the credit markets and to mitigate their ongoing risks
* Lessons learned for both the sell and buy sides in the credit markets
* How the credit derivative markets and regulation are changing as a result
* Exploration of how a similar crisis might occur again and how to be prepared
Who The Course is For
* Traders
* Loan officers
* Risk managers
* Fixed Income professionals
* Corporate bankers
* Regulators
* Investors
Prior Knowledge
Participants only need a general knowledge of the capital markets.
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Credit Derivatives 1 Risk Management Trading and Arbitrage
Day One
Overview of Credit Derivatives
Historical Development of the Market Before the Crisis
Credit Default Swaps
* Mechanics
* Who uses them, why they use them and how they use them
* Credit Default Swaps as the centre of the credit markets
Total Return Swaps
* Mechanics
* Who uses them, why they use them and how they use them
* Comparison to default swaps
Credit Linked Notes and Other Credit Derivative Products
* Mechanics
* Who uses them, why they use them and how they use them
* Designing a principal protected credit-linked note
* Options on Credit Default Swaps
* Equity Default Swaps
Day Two
Portfolio Products
* First to default Swaps
* CDO's/CLO's
* Who uses them, why they use them and how they use them
Trading Strategies
Risk Management Strategies
Comprehensive Exercise on the Dynamics of a Credit Trade
* Bank use of credit derivatives
* Institutional Investor use
* Hedge Fund implications
* Regulatory issues
Documentation
Regulatory Issues
Introduction to Pricing and Risk Management Issues
* Where did the mistakes happen
* Remaining issues
Operational Issues
* Managing credit derivatives
* Designing trading guidelines for credit derivatives
The Future of Credit Derivatives
Overview of Credit Derivatives
Historical Development of the Market Before the Crisis
Credit Default Swaps
* Mechanics
* Who uses them, why they use them and how they use them
* Credit Default Swaps as the centre of the credit markets
Total Return Swaps
* Mechanics
* Who uses them, why they use them and how they use them
* Comparison to default swaps
Credit Linked Notes and Other Credit Derivative Products
* Mechanics
* Who uses them, why they use them and how they use them
* Designing a principal protected credit-linked note
* Options on Credit Default Swaps
* Equity Default Swaps
Day Two
Portfolio Products
* First to default Swaps
* CDO's/CLO's
* Who uses them, why they use them and how they use them
Trading Strategies
Risk Management Strategies
Comprehensive Exercise on the Dynamics of a Credit Trade
* Bank use of credit derivatives
* Institutional Investor use
* Hedge Fund implications
* Regulatory issues
Documentation
Regulatory Issues
Introduction to Pricing and Risk Management Issues
* Where did the mistakes happen
* Remaining issues
Operational Issues
* Managing credit derivatives
* Designing trading guidelines for credit derivatives
The Future of Credit Derivatives
About The Training Provider: London Financial Studies
London Financial Studies - London Financial Studies is a specialist teaching resource that concentrates exclusively on capital markets. We offer individuals, teams and companies expert teaching that combines theoretical understanding with practical experience.
Our business is driven by a distinct philosophy and clear values:
* Practical Application
* Intellectual Clarity
* Personal Approach
*...
