Credit Derivatives and the Management of Risk (New York Institute of Finance)

A world-renowned expert demystifies a rapidly growing specialty in banking and finance, complete with a detailed comparison of credit risk models

Credit derivatives are revolutionizing the world of investment. But without a firm understanding of their mechanics and their bottom-line impact, these hot financial instruments can bring devastating losses. An international authority on risk management, Dr. Dimitris N. Chorafas draws on his own experience and the insights of 76 senior executives at 46 organizations worldwide to bring to the reader in a clear and comprehensive manner: the market for credit derivatives, the instruments which make trading in credit derivatives possible and the models which are applicable for the management of credit risk. Divided into three sections, the book first defines credit derivatives and examines their consequences. The second part provides an in-depth look at the instruments of credit derivatives and key underlying factors. And the final section focuses on the contributions of technology, with detailed models for evaluating and managing credit risk. The book contains many first, the reader won't find elsewhere: New markets for selling credit derivatives The rules of collateralization New instruments, such as derivatives of catastrophe insurance and hurricane derivatives Cover age of all currently available credit risk models A discussion of the work done by rocket scientists Emphasizing the need for risk management, exploring a range of opportunities in businesses across the board, and revealing exciting interactive possibilities, Dr. Chorafas empowers anyone who works with derivatives to get the best possible performance.

Dr. Dimitris N. Chorafas is an international management and financial consultant. His clients include major banks throughout Europe, as well as multinational corporations such as General Electric and Honeywell. A Fulbright scholar who received his doctorate at the Sorbonne, he has taught at Catholic University and lectures at colleges around the world. The author of more than a hundred books, some of which have been translated into 16 languages. He lives in Switzerland and France.