Investment Banking

Credit Default Swaps

Credit Default Swaps (CDS) is a specialized subject in finance that explores the mechanisms and implications of these financial derivatives used to manage credit risk. This course covers the structure and function of CDS, including how they transfer risk between parties and their role in hedging against credit events like defaults or downgrades. Students learn about pricing models, market dynamics, and the regulatory environment governing CDS. The subject also delves into the impact of CDS on financial markets and institutions, as well as the controversies and risks associated with their use. Mastery of CDS is essential for finance professionals involved in risk management, trading, and investment strategies.