An Introduction to Credit Derivatives

By admin • Oct 5th, 2008 • Category: Finance

An Introduction to Credit Derivatives

An Introduction to Credit Derivatives
By Moorad Choudhry

Publisher: Butterworth-Heinemann
Number Of Pages: 128
Publication Date: 2004-07-27
ISBN-10 / ASIN: 075066262X
ISBN-13 / EAN: 9780750662628
Binding: Hardcover

In a relatively short time credit derivatives have grown to become one of the largest and most important segment of the financial markets, with deal volumes now in trillions of dollars. They have become an important tool for banks, financial institutions and corporates who desire greater flexibility in managing their credit risk and economic capital. This book is an accessible introduction to the various types of credit derivative instruments traded in the markets today. All products are described with the help of worked examples and Bloomberg screens, and the reader will be left with a thorough familiarity with the nature of credit risk and credit products generally. Topics covered include:

* Credit risk
* Unfunded credit derivatives
* Funded credit derivatives
* Credit default swap pricing
* The asset-swap credit default swap basis

* Accessible account of major segment of financial markets
* Describes instruments and applications
* Integrates credit risk with credit derivatives

Summary: Overpriced Paper
Rating: 2

Juvenile pop culture references, an inconsistent “compilation of my notes” writing style, steeped in the jargon of fixed income, weak coverage of similar securities outside of the asset class (EDS vs. vanilla call), and stupifyingly overpriced given its breadth and length. This is really a hard-backed journal paper that should be purchased only with someone else’s money.

Summary: Watered Down
Rating: 1

This book bills itself as an introduction. It is only $44.95 as of this writing, but it isn’t worth it. The free J.P. Morgan Credit Derivatives Guide (RISK Publications) handed out at some conferences has as much substance, but also has the virtue of being free. The material in this book is very similar to the free research – too similar – and one can find this much on the web.

While many competing books are more expensive, they have more substance. There are several newly published credit derivatives books to choose from, and I would recommend giving this one a miss.

Summary: Excellent introduction
Rating: 5

This book is a very good introduction to the concept of credit derivatives and how to use them. But don’t be mislead, this book does not cover the various modelling & pricing issues but it sticks to the concepts, which makes him the best introductory book available on the topic.

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