Credit Derivatives & Synthetic Structures: A Guide to Instruments and Applications, 2nd Edition

FROM THE PUBLISHER

Credit derivatives and synthetic structures, some of today's fastest growing investment and risk management mechanisms, are revolutionizing the financial industry and changing the way banks, institutional investors, and securities traders do business, both domestically and globally. While potentially beneficial, these important instruments are complex structures that are often misunderstood and frequently mishandled. Written by credit product development specialist Janet Tavakoli, this groundbreaking book is the only comprehensive resource of its kind. It demystifies and clarifies all the fine points of credit derivatives and structured products, offering complete details on what they are, how they work, and how best to capitalize on them.

SYNOPSIS

Drawing on many years of experience in the financial industry, Tavakoli presents this text to help demystify and clarify the fine points of credit derivatives and synthetic structures, which are potentially beneficial, but often misunderstood and mishandled financial instruments. The new edition features additional information on Total Rate of Return Swaps (TRORS); new exotic structures including callable step-ups; a new chapter on synthetic collatoralized loan obligations; information on some of the larger issues, including basis risk embedded in delivery options and definitions of credit events, bank best practices and how to initiate a firm-wide credit risk management program, and the future of internet trading. Annotation c. Book News, Inc., Portland, OR (booknews.com)

WHAT PEOPLE ARE SAYING

If you want to know more about credit derivatives--and these days an increasing number of people do--then you should read this book.--(Merton H. Miller, winner, Nobel Prize in Economics, 1990) — Merton H. Miller