Implementing Credit Derivatives: Strategies and Techniques for Using Credit Derivatives in Risk Management (Irwin Library of Investment and Finance) - Hardcover

Nelken, Israel

9780070472372: Implementing Credit Derivatives: Strategies and Techniques for Using Credit Derivatives in Risk Management (Irwin Library of Investment and Finance)

Hardcover

ISBN 10: 0070472378 ISBN 13: 9780070472372

Publisher: McGraw-Hill, 1999

Credit derivaties are the hottest topic in institutional investing today. These innovative products are widely used throughout the financial world, with estimates of as much as $100 billion traded by 2000. Implementing Credit Derivatives goes beyond the basics of what credit derivatives are and tackles the reality of implementing them into a derivatives and credit management strategy. There is an emphasis on the practical side of how to effectively use these instruments. Numerous case studies illustrate many key points. The reader will gain the necessary skills to gain maximum benefit from using these instruments, learning: how to exploit credit derivatives for maximum profit; the structure of mechanics of alternative credit derivative products; key regulatory and legal issues; successful strategies for trading and hedging credit derivatives; effective use of credit derivatives in emerging markets.

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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.

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