Risk Management - Credit & Counterparty Risk for Funds

Credit risk is the oldest form of risk in financial markets. Although credit risk has existed since antiquity, we still have not perfected the way in which we manage it. This course provides participants with a good understanding of credit/counterparty risk in the fund industry and the methods for managing it effectively.

• Understand the different types of credit/counterparty risk in the fund industry
• Learn different methods for measuring credit/counterparty risk in the fund industry
• Understand both internal and external credit ratings
• Analyse the counterparty risk for derivatives, particularly over-the-counter derivatives
• Learn how to manage collateral risk

• Introduction
• Credit Risk Measurement
  • Key Variables
  • Credit Portfolio Models
• Credit Ratings
  • Rating Agencies
  • Internal Ratings
• Credit Risk for Financial Instruments
  • Debt Instruments
    • Default Risk
    • Spread Risk
    • Migration Risk
    • Settlement Risk
  • Derivatives
    • Counterparty Risk
• Managing Collateral Risk
• Future Trends in Credit Risk Management