Review article on the Credit derivatives markets from theoretical pricing and applications perspectives.

Your report will be organized to meet the following sub-objectives:

a) Historical developments in single name CDS products and their value in managing credit risk . (15 marks)

b) Methodology to effectively price a single name CDS, with an application on a single name issuer. (30 marks)

c) Critical review of research and methodologies used in examining factor risks and their associated spill-over impacts on CDS prices. (30 marks)

d) Review of latest developments in Emerging market Credit derivatives, together with selected reviews of applications in credit risk management. (15 marks)

Guidelines:

• Answer all questions adopting a professional approach to this work. Present your review in a report format.
• Your report should be produced in Word. Excel spreadsheets should be used for all calculations where necessary.
• Any relevant information related to the application of a particular derivative product should include fully referenced paragraphs of any related work done by other authors (ie in journal articles andspecialist textbooks etc), description of the derivative products and mechanics of how the security will achieve a desired result in a structured finance application.
• Your analysis should demonstrate an understanding of the underlying theory, its assumptions and limitations in an applied context.
• Detailed coverage of both the theory and practice of CDS financial derivative products is required. You will also be judged on your ability to make sound business and quantitative financial decisions.
• The report produced must be accurate, well presented and referenced. You need to demonstrate wide reading and coverage of the subject area being examined.

• Do use the Bloomberg database to obtain the data required for case examples.
PS: That is very important thing to mind you, this coursework should be attach a table on excel Data which was search in Bloomberg.

Is this the question you were looking for? If so, place your order here to get started!