Introduction to Credit Markets

LEVEL: INTRODUCTORY LEVEL

▪	Learn credit risk management techniques using various instruments: corporate bonds, asset swaps, CDS and CDO
▪	Know the mechanics and uses of credit derivatives, CDOs and other structured credit products
▪	Understand the securitisation market
▪	Expand your investment universe beyond traditional interest rate products

▪	Credit risk management - Introductory
▪	Credit ratings, spreads and the cost of risk - Introductory
▪	Pricing corporate bonds and CDS - Introductory
▪	Mechanics and uses of credit derivatives - Introductory
▪	Legal and regulatory framework - Introductory
▪	Mechanics of securitisation - Introductory
▪	Synthetic securitisation - Introductory
▪	Applying securitisation techniques to credit risk: CDOs - Introductory

▪	Extensive study of the credit market
▪	Identify credit risk and acquire key pricing
▪	and management tools
▪	Presentation of credit derivatives and structured products
▪	Key securitisation techniques
▪	No prior mathematical knowledge required

▪	Risk managers
▪	Middle & back office staff
▪	Internal controllers, auditors
▪	Interest rate managers and junior interest rate & credit traders
▪	Salespeople and financial intermediaries
▪	Senior bankers, coverage
▪	Legal and tax departments
▪	Structured finance professionals
▪	Finance departments
▪	Institutional investors

Credit Risk Approaches
▪	Regulatory approach (Basel II)
▪	Credit rating agencies (credit rating and probability of default)
▪	Market spread
Bond Market
▪	Origination and syndication
▪	Secondary market
▪	Fixed-rate notes (FRN)
▪	Practical Workshop . Structure an asset swap
Credit Derivatives
▪	Credit Default Swaps (CDS)
▪	Credit Linked Notes (CLN)
▪	Total Return Swaps (TRS)
▪	Index products (iTraxx)
▪	Practical Workshop . Price a CDS
Credit Derivatives: Uses
▪	Covering credit risk
▪	Synthetic debt construction
▪	Optimising regulatory capital requirements
▪	Diversification and speculation tools
Introduction to Securitisation Techniques
▪	Basic principles and overview
▪	Asset classes: ABCP, RMBS, CMBS, ABS
▪	Practical Workshop . Study a secondary offer sheet
The CDO Market
▪	A product half-way between securitisation and credit derivatives
▪	Structures: cash and synthetic
▪	Transfer of credit risk
▪	Analysis of the most recent financial crises
Latest Developments on the Credit Market