Understanding Credit Default Swaps & Systemic Risk Fundamentals Training by Tonex
This course provides an in-depth understanding of credit default swaps (CDS) and their role in financial markets. Participants will explore the fundamentals of CDS, risk assessment, pricing mechanisms, and regulatory considerations. The course also covers systemic risk, market stability, and the impact of financial crises. Real-world case studies help participants grasp the complexities of CDS and systemic risk management. By the end of the course, attendees will gain the knowledge needed to analyze CDS transactions and mitigate financial risks effectively.
Audience:
- Financial analysts
- Risk managers
- Investment professionals
- Regulatory officials
- Banking professionals
- Credit analysts
Learning Objectives:
- Understand credit default swaps and their market function
- Analyze systemic risk and its financial implications
- Learn CDS pricing models and risk assessment techniques
- Examine regulatory frameworks for CDS markets
- Explore real-world case studies on financial crises
Course Modules:
Module 1: Introduction to Credit Default Swaps
- Definition and purpose of CDS
- Evolution of CDS markets
- Key participants in CDS transactions
- CDS market size and liquidity
- Differences between single-name and index CDS
- Role of CDS in credit risk management
Module 2: CDS Pricing and Valuation
- Key components of CDS pricing
- Spread calculation and default probabilities
- Role of credit ratings in CDS pricing
- Market conventions in CDS valuation
- Understanding CDS curves and market movements
- Factors influencing CDS spreads
Module 3: Systemic Risk in Financial Markets
- Definition and significance of systemic risk
- Impact of financial crises on market stability
- Interconnections between financial institutions
- Role of leverage in systemic risk
- Contagion effects in global markets
- Policy responses to systemic risk
Module 4: Regulatory Frameworks and Compliance
- Overview of CDS regulations
- Role of financial regulators in CDS markets
- Risk mitigation through regulatory policies
- Capital requirements for CDS exposure
- Dodd-Frank Act and CDS regulations
- Compliance challenges in CDS transactions
Module 5: CDS Market Risks and Mitigation Strategies
- Counterparty risk in CDS transactions
- Managing liquidity risk in CDS markets
- Credit event definitions and settlement processes
- Risk management tools for CDS portfolios
- Role of clearinghouses in CDS risk mitigation
- Best practices for CDS risk assessment
Module 6: Case Studies and Market Applications
- Case study: 2008 financial crisis and CDS impact
- Lessons from major CDS-related failures
- CDS in corporate risk management strategies
- Practical applications in investment portfolios
- Evaluating CDS effectiveness in hedging
- Future trends in CDS and financial risk
Enhance your expertise in credit default swaps and systemic risk with this specialized training. Gain practical insights, industry knowledge, and risk management skills. Enroll today!