Understanding Credit Derivatives and Related Instruments

Understanding Credit Derivatives and Related Instruments, Second Edition provides a clear and thorough exploration of credit derivatives by seamlessly connecting practical valuation and trading techniques with foundational academic theories. The book avoids overwhelming technical details by summarizing key topics and presenting the main perspectives in an accessible manner. It emphasizes pricing and valuation issues, showcasing the tools used within credit models to decipher complex market dynamics. Updated to include insights post the 2008 financial crisis, this edition introduces five new chapters that discuss standardized premiums, upfront payments, and regulatory adjustments shaped by Basel III, Dodd-Frank, and other significant reforms. With comprehensive statistical and mathematical explanations interwoven into its analysis, the text is ideally suited for readers with a mid-level background in mathematics who wish to deepen their understanding of both the practical and theoretical sides of the derivatives markets.