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 creditderiv
II. What Are CreditDerivatives?
Derivatives are defined as the exchange or contract which has economic values deriving from the reference assets or index. According to their types, there are overall forward, future, option, and swap. Derivatives are the financial derivatives, which are enabled to trade in the market while consisting of separating the credit risk only to the holder of basic p
derivative assets rose significantly, led by an increase in interest rate derivatives with further growth in credit and foreign exchange derivatives. The global falls in interest rates resulted in significant gaps between the fixed and floating legs of interest rate swaps. Widening credit spreads and increasing market volatility caused mark-to-market increases in the value of creditderivatives.
Ⅰ. 서론
신용파생상품(CreditDerivatives)이란 금융기관이 보유하고 있는 채권(채권), 대출금 등 기초자산(underlying asset)의 신용위험(credit risk)을 분리(derive)하여 거래상대방에게 이전하고 거래 상대방은 위험부담에 따른 수수료를 수수하는 금융거래계약이다. 실무관행상 신용위험을 매도하는 자를 보장매
Ⅰ. 금융과 금융거래
신종금융거래의 신용 리스크 관리를 위해서는 담보구조의 이용 이외에도 많은 대체수단이 이용되고 있다.
1. 일부 금융기관은 거래에 있어서 상대방의 신용 리스크에 대한 우려를 불식시키기 위한 방안으로 특별목적기구(special purpose derivatives vehicles)를 이용한다
이는 장외