Credit markets have a variety of trading opportunities depending on credit spreads, volatility in credit markets, credit worthiness, and liquidity. Trading can range from outright positioning to relative value within the same credit, between credits and between different credit instruments. The program will focus on the practical realities of the market, rather than taking an excessively mathematical or academic approach, and discuss how liquidity, carry, and rolldown impact credit trading.
Course Objectives
By the end of the course, participants will be able to:
- Identify and compare credit risk across single name and index products: bonds, loans, single name and index CDS including corporate, financial, and sovereign CDS
- Develop an intuitive understanding of the pricing of different instruments and the drivers of their credit spreads
- Examine the various trading strategies that credit investors utilize, including single name trading, relative value between bonds and CDS, curve trades and capital structure trades
Suggested Prerequisites:
- Credit Default Swaps or equivalent knowledge
Program Level:Intermediate
Advance Preparation: None
Computers and Financial Calculators: N/A
Recommended CPE Credits: 7