A credit event is a pre-defined event related to the change in the credit standing of a borrower. It is called so because the occurance of such an event is a trigger for a credit derivative such as a credit default swap. The International Swaps and Derivatives Association (ISDA) has defined 6 credit events: 1.
In this post we will take a cursory look at exotic products and how banks market them to customers. Most of the innovations have been on the options side as swaps have only recently developed into non-financial areas. Options are now classified into two broad categories: Path independent (European options); Path Dependent (American and Exotic
This video explains the benefits of taking the FRM examination for the everyday risk professional. [ad#adsense-hb]