Options and Derivatives Programming in C++23: Algorithms and Programming Techniques for the Financial Industry

© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023

C. OliveiraOptions and Derivatives Programming in C++23https://doi.org/10.1007/978-1-4842-9827-5_16

16. Credit Derivatives

Carlos Oliveira¹  

(1)

Seattle, WA, USA

 

A credit derivative is a financial contract that aims at reducing credit risk—that is, the risk of default posed by contracts established with a business counterparty. These kinds of derivatives have become increasingly popular in the last decade, because they allow the hedging of complex financial positions even in industries that are not covered by mainstream markets.

As a financial software engineer, you are interested in modeling and analyzing such credit derivative contracts using programming ...