Part Six focuses on credit risk, credit derivatives, and structured products. Chapter 23 provides a detailed introduction to models of credit risk and concludes with an introduction to an important structured product: collateralized debt obligations. Chapter 24 focuses on credit derivatives with an emphasis on credit default swaps. These important derivatives facilitate the management and transfer of credit risk, which facilitates, among other things, efficient diversification. Finally, Chapter 25 focuses on collateralized debt obligations. These sophisticated and powerful structured products have played a valuable but controversial role in the global economy.