Credit Derivatives - Managing The Key Risk

Course Date	Ref No	Location	Price	Book
Monday 18 June 2012	109	Fenchurch Avenue	£595.00

Description

Credit derivatives have developed a reputation for blowing up banks and the world’s developed economies. The recent JP Morgan $ 2 billion losses involving credit index contracts supports their reputation for causing havoc.

This one day course examines this product sector from a practical risk and control perspective.

We also take the opportunity to analyse the control implications of major regulatory initiatives aimed at forcing these instruments onto exchanges and into clearing mechanisms.

The course will include an analysis of the recent issues in covering credit risk on Greek sovereign bonds and any lessons that can be learnt from the recent JP Morgan incident.

Aimed At

Internal auditors, compliance officers, risk managers and controllers in banks with a basic understanding of wholesale credit products and / or dealing room products, who wish to develop their knowledge of credit derivatives and the essential control structures.

Programme

• An explanation of the following types of credit derivative instruments:-
o Credit default swaps
o Total return swaps
o Option-type credit instruments
o Embedded derivatives in bond structures

• An examination of practical uses of these instruments

• An analysis of the risks involved in the use of credit derivatives

• Control benchmarks covering the product formation process, legal documentation, trading losses and the management of counterparty and operational risks

• Developments in the trading and settlement of credit derivatives

• An analysis of the regulatory dimension

• The Greek fiasco – key lessons.

• The JP Morgan Lessons

Trainer Name

Sandro Boeri