37281 - Credit Derivatives

Academic Year 2016/2017

  • Teaching Mode: Traditional lectures
  • Campus: Bologna
  • Corso: Second cycle degree programme (LM) in Quantitative Finance (cod. 8854)

Learning outcomes

The aim of the course is to become aware of the classical models for the evaluation of defaultable bonds and credit derivatives and to be able to understand and price the most common credit derivatives.

Course contents

Credit risk. Rating systems. Merton model (1974) and extensions. Structural approach and reduced-form approach. Credit derivatives. CDS. CDOs.

Readings/Bibliography

Textbooks and articles will be suggested during the classrooms.

Some slides will be handed out.

Teaching methods

Lectures and exercises.

Assessment methods

Written exam consisting of exercises and short questions on the main concepts. Calculating machines are needed.

Teaching tools

The text of the lectures and a few exercises will be made available.

Office hours

See the website of Rossella Agliardi