5.4 Swaps and Other Derivatives

In this section

• Credit Default Swaps: Understanding the Mechanics and Implications
  Explore the intricacies of Credit Default Swaps (CDS), their role in credit risk management, and the associated risks and controversies.
• Interest Rate Swaps: Understanding, Application, and Strategic Benefits
  Explore the intricacies of interest rate swaps, their structure, usage in risk management, motivations for engagement, and the calculation of net payments. Learn the benefits and risks associated with these financial instruments.
• Currency Swaps: Mechanics, Benefits, and Strategic Use in Cross-Border Financing
  Explore the mechanics, advantages, and strategic uses of currency swaps in cross-border financing, including detailed examples and considerations for managing these financial instruments.
• Structured Products: A Comprehensive Guide to Pre-Packaged Investments
  Explore the intricate world of structured products, their creation using derivatives, investment objectives, examples, and the associated benefits and risks.
• Collateralized Debt Obligations: Understanding Structure, Risk, and Impact
  Explore the intricacies of Collateralized Debt Obligations (CDOs), their structure, risk allocation, and the role they played in the financial crisis.