Credit

Instruments that transfer or hedge the credit/default risk of borrowers.

6 products, each with a five-step lesson, a worked example and a bank of twelve questions.

• Credit Default Swap — Insurance against a borrower defaulting
• CDX Index — A basket of CDS in one tradable index
• Total Return Swap — Rent the full return of an asset
• Credit-Linked Note — A bond whose repayment depends on a credit event
• Asset Swap — Turn a fixed-rate bond into a floating one
• Credit Index Option — An option on a credit index spread

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