Product Description
Trading of credit derivatives will soon pass the $100 billion mark! This 'real world' book goes beyond the fundamentals of credit derivatives to explore the practical realities of derivatives in a credit risk management strategy. Key regulatory and legal issues are covered, along with numerous case studies to clearly demonstrate application of the strategies discussed.
From the Back Cover
Hands-on Guidelines for Effective Credit Derivatives Use - From One of the industry's Most Authoritative Derivatives Experts. By allowing investors to unbundle credit risk from underlying instruments such as loans, bonds, or swaps, credit derivatives protect bond holders and lenders from the ever-present danger of issuer or borrower default.
This relatively new asset class is on course to become a $1 trillion market by 2000. Confusion over how to effectively use these volatile instruments has been rampant, and investors have had difficulty getting trusted information and guidelines. But in Implementing Credit Derivatives, Israel Nelken - one of the world's leading authorities on
credit derivatives, exotic options, and financial engineering - goes beyond the basics and theory of credit derivatives to explain their use in everday financial engineering practice. This comprehensive treatment provides hands-on explanations and case studies that cover: The structure and mechanics of alternative credit derivative products; The mechanics of creating, analyzing, and valuing structured credit derivatives; Successful strategies for trading and hedging credit derivatives; Important yet easily overlooked regulatory and legal issues; Similarities between credt derivatives and other financial instruments, e.g. repo trades; When to use credit derivatives versus
CBOs or CLOs - and why; Regulatory and economic capital aspects; How to use credit derivatives as a uniquely effective hedge in today's volatile emerging markets.
