Credit Derivatives and Structured Credit

Over the past decade, credit derivatives have emerged as the keyfinancial innovation in global capital markets. At end 2004, themarket size hit $6.4 billion (in notional amounts) from virtuallynothing in 1995. This rise has been spurred by the imperative forbanks to better manage their risks, not least credit risks, and theappetite shown by institutional investors and hedge funds forinnovative, high yielding structured investment products. As aresult, growth in collateralized debt obligations and othersecond-generation products, such as credit indices, is currentlyphenomenal. It is enabled by the standardization and increasedliquidity in credit default swaps - the building block of thecredit derivatives market. Written by market practitioners and specialists, this bookcovers the fundamentals of the credit derivatives and structuredcredit market, including in-depth product descriptions, analysis ofreal transactions, market overview, pricing models, banks businessmodels. It is recommended reading for students in business schoolsand financial courses, academics, and professionals working ininvestment and asset management, banking, corporate treasury andthe capital markets. Highlights include: * Written by market practitioners and specialists with first-handexperience in the credit derivatives and structured creditmarket * A clearly-written, pedagogical book with numerousillustrations * Detailed review of real-case transactions * A comprehensive historical perspective on market developmentsincluding up-to-date analysis of the latest trends