Managing Portfolio Risk with Credit Derivatives

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CFA Institute Conference Proceedings Quarterly
February 2005 | Vol. 2005 | No. 1 | 6 pages
Source: Association for Investment Management and Research
Marc P. Seidner, CFA

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Abstract

Although futures, swaps, and options provide effective means for managing most of the main types of fixed-income portfolio risk, until relatively recently investors lacked the means for hedging credit risk. The advent and rapid growth of the credit derivatives market addressed this need. Critically, credit derivatives also provide an alternative source of liquidity to a largely inefficient corporate bond market.

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Topics
Derivatives
|
Fixed Income
    :
  • Analysis of Credit Risk
|
Risk Management
    :
  • Portfolio Risk Management
Credits · About the CE Program
0.5 CE (including 0 SER) Manage CE Credits

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