Abstract
This chapter describes credit derivatives, instruments that are used to manage credit risk in banking and portfolio management. In this chapter we consider only the most commonly encountered credit derivative instruments. Credit derivatives exist in a number of forms. We classify these into two main forms, funded and unfunded credit derivatives, and give a description of each form. We then discuss the main uses of these instruments by banks and portfolio managers. We also consider the main credit events that act as triggering events under which payouts are made on credit derivative contracts.
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© 2005 Moorad Choudhry, Didier Joannas, Richard Pereira and Rod Pienaar
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Choudhry, M., Joannas, D., Pereira, R., Pienaar, R. (2005). Credit Derivatives. In: Capital Market Instruments. Finance and Capital Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230508989_19
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DOI: https://doi.org/10.1057/9780230508989_19
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-52426-6
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