Book description
Credit Default Swaps (CDS) influence how bonds and loans trade and the relative value between bonds and loans. CDS can be the best way to hedge the risk of a corporate debt position and can also be a valuable investment tool in its own right. CDS has a multitude of nuances to it, from how its structured to how it is priced to how it is traded. If you are going to do analysis of corporate debt, especially in the leveraged finance market, you need to understand CDS. This booklet walks you through the basics of how CDS works, gives some perspective on how it has changed since the 2008 crisis and gives practical examples of how CDS is used and analyzed for corporate issuers. It is a valuable summary for anyone looking to do corporate credit analysis.
Table of contents
- Title Page
- Copyright Page
-
The Role of Credit Default Swaps in Leveraged Finance Analysis
- Introduction
- Definition of Credit Default Swaps
- Payment for the CDS
- The Reference Name
- The Length of the CDS Contract
- An Example
- Background on CDS
- Developments in Standardization
- Contract Dates
- Determining a Credit Event and the Settlement Price
- When a CDS Contract Is Orphaned
- A Succession Event
- The Basis
- Curve Trades
- Example of a CDS Trader Run
- A Brief Closing Comment
- Appendix of Select CDS Terms
- Endnotes
- Related Titles from FT Press
Product information
- Title: The Role of Credit Default Swaps in Leveraged Finance Analysis
- Author(s):
- Release date: October 2012
- Publisher(s): Pearson
- ISBN: 9780133150797
You might also like
book
A Pragmatist’s Guide to Leveraged Finance: Credit Analysis for Bonds and Bank Debt
The high-yield leveraged bond and loan market (“junk bonds”) is now valued at $3+ trillion in …
book
How to Analyze and Use Leveraged Finance Bonds for Project Finance
Much of leveraged finance credit analysis focuses on cash flows. But what happens when the credit …
book
Leveraged Finance: Concepts, Methods, and Trading of High-Yield Bonds, Loans, and Derivatives
A timely guide to today's high-yield corporate debt markets Leveraged Finance is a comprehensive guide to …
book
Leveraged Buyouts: A Practical Guide to Investment Banking and Private Equity, + Website
A comprehensive look at the world of leveraged buyouts The private equity industry has grown dramatically …
