소개글
[국제경제] 신용 파생상품(credit derivatives)과 서브프라임 위기(영문)에 대한 자료입니다.
목차
1.What is Credit Derivatives?
2.Benefits of Credit Derivatives and the Growth
3.Credit Derivatives and the Subprime Crisis
4.Discussions about Regulations In G20
5.Current Korean Issues
본문내용
It is a contract that the protection seller transfers credit risk which provides the amount of loss to the protection buyer if credit events promised in advance occur before the expiration.
The protection buyer trying to transfer the credit risk periodically pays for the premium, which is the cost for the risk, until the end of the contract.
Useful to hedge default risks
A more efficient way of risk management
Raise capitals by purchasing the insurance
Can diversify their portfolios
The leverage effect and the chance to participate in market; most of credit derivatives do not require real capital investment
★Benefits
* Reduction in systemic counterparty risk(CCP)
- multilateral netting effect
- qualifications for participants(financial soundness)
Increase in market transparency(TR)
Effective market surveillance
+ reduction in operational risk
- requirement for back office operations
★ Needs for success
- Standardized contracts
- Regulatory coordination
- Disclosure financial reporting of credit derivatives