For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: analystprep.com/shop/unlimite...
AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams
After completing this reading you should be able to:
- Compare different types of credit derivatives, explain how each one transfers credit risk and describe their advantages and disadvantages.
- Explain different traditional approaches or mechanisms that firms can use to help mitigate credit risk.
- Evaluate the role of credit derivatives in the 2007-2009 financial crisis and explain changes in the credit derivative market that occurred as a result of the crisis.
- Explain the process of securitization, describe a special purpose vehicle (SPV) and assess the risk of different business models that banks can use for securitized products.
0:00 Introduction
0:53 Learning Objectives
1:20 Overview of Credit Risk Management
7:09 Credit Derivatives in 2007/2009
9:04 Credit Default Swaps (CDS)
19:04 CDS Manipulation: Illustration
20:33 Collateralized Debt Obligations (CDO)
27:39 Collateralized Loan Obligations
28:01 Total Return Swap
33:15 Credit Default Swap Option
34:44 Traditional Risk Mitigation Techniques
36:48 Securitization
23 июл 2024
