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FX Markets Derivatives, Cross Currency Swaps, and Credit Derivatives

Learn about Credit Default Swaps (CDS), and the basic information such as bankruptcy; restructuring; hazard rate; survival probability; credit spread; and other factors used in pricing and trading credit default products. We will also present some of the mathematical formulations and their applications to trading CDS.

As mentioned, the CDS market has grown drastically, and many new products and indices have been introduced. We will discuss some of these products and indices, and help you to get an overview of this exciting and somewhat complicated market today.

We're going to wrap up this course by going through a brief overview of asset swaps and the basic structure of them. The examples of asset swaps and their applications will be discussed.

What you'll learn

Explain Credit Default Swaps (CDS) and their importance in finance.
Describe CDS, their basic parameters, and their valuations.
Understand how to apply CDS to investment, hedging, and structuring.
Understand CDS, Credit Default Swap Index (CDX), and various other indices created to meet financial needs.

Understand Asset Swaps and their applications.

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What's inside

Syllabus

Module 01: Foreign Exchange Markets

Lesson 01: Overview

Lesson 02: Managing FX Risk

Module 02: Foreign Exchange Forwards and Futures

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Helps students understand Credit Default Swaps (CDS) and other financial instruments, preparing them for careers in the finance industry

Taught by Jack Farmer, an expert in credit derivative products

Covers a range of topics related to CDS, including pricing, trading, and applications in investment and hedging

Provides a comprehensive overview of the CDS market, including its history, growth, and the development of new products and indices

Includes a module on asset swaps, providing a foundation for understanding more complex financial instruments

This course is suitable for professionals in the finance industry, including portfolio managers, investment analysts, and risk managers

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Reviews summary

Comprehensive guide to derivatives and swaps

According to learners, this course is a highly valuable resource for professionals seeking to understand FX markets, cross-currency swaps, and credit derivatives. Many appreciate the instructor's clear explanations, which make complex financial concepts accessible, even for those new to derivatives. The inclusion of real-world examples and practical applications is frequently highlighted as a major strength. While some older reviews noted a lack of practical exercises or occasional theoretical dryness, recent feedback suggests the course has seen significant updates, particularly in the Credit Default Swap (CDS) sections, improving depth and relevance. However, some still desire more in-depth practical problem-solving or feel it assumes some prior financial knowledge.

Course has been updated, improving depth and relevance over time.

"The recent updates seem to have improved the depth, especially in the CDS section."

"The recent updates to the CDS module are a significant improvement. What's there is solid."

"While older reviews cited some outdated material, recent versions feel much more current and comprehensive."

Content is highly relevant with useful real-world examples and case studies.

"The real-world examples and case study were particularly helpful in grasping the practical applications."

"The content is very relevant to current market practices. The course stands alone as a great introduction..."

"I learned how to apply this to real-world scenarios, making it highly valuable for my professional work."

Instructor excels at making advanced financial derivatives understandable.

"The instructor explains complex concepts like CDS and cross-currency swaps with remarkable clarity..."

"Excellent course for understanding the nuances of FX and credit markets. I found the explanations of hazard rates and survival probability to be very clear."

"Simply outstanding. I finally understood Credit Default Swaps after taking this course. The logical flow from basic concepts to more complex applications... was perfect."

Instructor delivery can be dry; some desire more interactive elements.

"...the instructor's delivery was quite dry, making it hard to stay engaged."

"Some visual aids or interactive elements could enhance the learning experience."

"The quality of audio/video was sometimes poor... It needs more interactive elements to aid understanding."

May be challenging for absolute beginners without a finance background.

"It assumes some prior knowledge... I had to supplement with external readings."

"Not suitable for beginners, and not deep enough for advanced users. Left me wanting more."

"Some concepts were introduced quickly without enough foundational explanation. I felt overwhelmed at times."

Learners wish for more hands-on problems and less theoretical focus.

"I was hoping for more practical, hands-on scenarios, but it was mostly theoretical."

"My only critique is that some sections felt a bit theoretical and could use more practical problem-solving exercises."

"Could use more in-depth coverage on complex topics or optimization techniques in practical settings."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in FX Markets Derivatives, Cross Currency Swaps, and Credit Derivatives with these activities:

Review Basic Probability Concepts

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Review foundational probability concepts to strengthen the understanding of the advanced concepts that will be covered in the course.

Browse courses on Probability

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Go through notes or textbooks on basic probability concepts.
Practice solving simple probability problems.

Explore CDS Market Trends

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Follow online tutorials and articles to stay updated on the latest developments and trends in the CDS market.

Browse courses on Market Analysis

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Identify reputable financial news sources and industry blogs.
Subscribe to email alerts or RSS feeds for relevant topics.
Review and analyze market commentaries and research reports.

CDS Valuation Calculations

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Engage in repetitive practice of CDS valuation calculations to enhance comprehension and accuracy.

Browse courses on Credit Default Swaps

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Set up a spreadsheet or use a financial calculator.
Input the necessary parameters, such as recovery rate, hazard rate, and time to maturity.
Calculate the CDS spread and premium.

Four other activities

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Show all seven activities

CDS Industry Blog Post

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Write a blog post that discusses a specific topic or trend in the CDS industry, demonstrating understanding and critical thinking.

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Identify a relevant and engaging topic.
Research and gather information from credible sources.
Develop a clear and well-structured outline.
Write the blog post, ensuring accuracy, conciseness, and readability.
Proofread and edit the post carefully before publishing.

Non-Profit Credit Risk Assessment

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Volunteer to assist a non-profit organization with assessing the creditworthiness of potential borrowers.

Browse courses on Credit Risk Assessment

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Contact local non-profit organizations and inquire about volunteer opportunities.
Review the organization's financial statements and other relevant documents.
Analyze the organization's financial health and creditworthiness.
Prepare a report summarizing your findings and recommendations.
Present your findings to the organization's management team or board of directors.

CDS Pricing Model Presentation

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Develop a comprehensive presentation that explains the concepts and applications of a specific CDS pricing model.

Browse courses on Presentation

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Choose a suitable CDS pricing model.
Research and gather data on relevant factors.
Build the pricing model using appropriate software or tools.
Create presentation slides that clearly explain the model and its implications.
Practice presenting the model to peers or colleagues for feedback.

CDS Trading Simulation

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Participate in a simulated CDS trading competition to apply knowledge and strategies in a realistic environment.

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Join an online or in-person CDS trading simulation platform.
Develop a trading strategy based on market analysis.
Monitor market conditions and execute trades accordingly.
Evaluate performance, adjust strategy, and seek feedback from experts.

Career center

Learners who complete FX Markets Derivatives, Cross Currency Swaps, and Credit Derivatives will develop knowledge and skills that may be useful to these careers:

Credit Analyst

A Credit Analyst is responsible for analyzing the creditworthiness of individuals and companies. They use their knowledge of financial markets and instruments, such as credit default swaps (CDS), to assess the risk of default and make recommendations on lending decisions. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other credit derivatives.

See salaries and explore the career path for Credit Analyst

Portfolio Manager

A Portfolio Manager is responsible for managing investment portfolios for individuals and institutions. They use their knowledge of financial markets and instruments to make investment decisions that aim to meet the client's financial goals. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS and other credit derivatives, as well as how to use them to manage risk and enhance returns.

See salaries and explore the career path for Portfolio Manager

Risk Manager

A Risk Manager is responsible for identifying, assessing, and managing financial risks for a company. They use their knowledge of financial markets and instruments to develop strategies to mitigate risk and protect the company's financial health. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS and other credit derivatives, as well as how to use them to manage risk.

See salaries and explore the career path for Risk Manager

Financial Analyst

A Financial Analyst is responsible for analyzing financial data and making recommendations on investment decisions. They use their knowledge of financial markets and instruments to identify undervalued securities and make investment recommendations. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS and other credit derivatives, as well as how to use them to analyze risk and identify investment opportunities.

See salaries and explore the career path for Financial Analyst

Investment Banker

An Investment Banker is responsible for advising companies on mergers and acquisitions, capital raising, and other financial transactions. They use their knowledge of financial markets and instruments to structure and execute transactions that meet the client's financial goals. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS and other credit derivatives, as well as how to use them to structure and execute transactions.

See salaries and explore the career path for Investment Banker

Derivatives Trader

A Derivatives Trader is responsible for buying and selling derivatives, such as CDS, options, and futures. They use their knowledge of financial markets and instruments to identify trading opportunities and execute trades that aim to generate profit. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other derivatives.

See salaries and explore the career path for Derivatives Trader

Quantitative Analyst

A Quantitative Analyst is responsible for developing and using mathematical models to analyze financial data and make investment decisions. They use their knowledge of financial markets and instruments to create models that can identify undervalued securities and make investment recommendations. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS and other credit derivatives, as well as how to use them to develop and use mathematical models.

See salaries and explore the career path for Quantitative Analyst

Actuary

An Actuary is responsible for assessing and managing financial risks for insurance companies and other financial institutions. They use their knowledge of financial markets and instruments, such as CDS, to develop and implement strategies to mitigate risk and protect the company's financial health. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other financial instruments.

See salaries and explore the career path for Actuary

Insurance Underwriter

An Insurance Underwriter is responsible for assessing and managing the risk of insurance policies. They use their knowledge of financial markets and instruments, such as CDS, to determine the likelihood of a claim being made and set the appropriate premium. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other financial instruments.

See salaries and explore the career path for Insurance Underwriter

Hedge Fund Manager

A Hedge Fund Manager is responsible for managing hedge funds, which are investment funds that use a variety of strategies to generate profit. They use their knowledge of financial markets and instruments, such as CDS, to make investment decisions that aim to generate superior returns. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other financial instruments.

See salaries and explore the career path for Hedge Fund Manager

Private Equity Investor

A Private Equity Investor is responsible for investing in private equity funds, which are investment funds that invest in private companies. They use their knowledge of financial markets and instruments, such as CDS, to identify undervalued companies and make investment decisions that aim to generate superior returns. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other financial instruments.

See salaries and explore the career path for Private Equity Investor

Venture Capitalist

A Venture Capitalist is responsible for investing in early-stage companies with high growth potential. They use their knowledge of financial markets and instruments, such as CDS, to identify undervalued companies and make investment decisions that aim to generate superior returns. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other financial instruments.

See salaries and explore the career path for Venture Capitalist

Financial Consultant

A Financial Consultant is responsible for providing financial advice to individuals and businesses. They use their knowledge of financial markets and instruments, such as CDS, to help clients make informed financial decisions. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other financial instruments.

See salaries and explore the career path for Financial Consultant

Compliance Officer

A Compliance Officer is responsible for ensuring that a company complies with all applicable laws and regulations. They use their knowledge of financial markets and instruments, such as CDS, to identify and mitigate compliance risks. This course will help you develop the skills and knowledge necessary to succeed in this role, including an understanding of CDS pricing and trading, as well as other financial instruments.

See salaries and explore the career path for Compliance Officer

Economist

An Economist is responsible for studying and analyzing economic data to make predictions about the future of the economy. They use their knowledge of financial markets and instruments, such as CDS, to understand the impact of economic events on financial markets and make recommendations on economic policy.

See salaries and explore the career path for Economist

Reading list

We've selected six books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in FX Markets Derivatives, Cross Currency Swaps, and Credit Derivatives.

Financial Risk Manager Handbook

Save

Provides a comprehensive overview of the credit derivatives market, including CDS, CLNs, and other related products. It valuable resource for anyone who wants to learn more about these complex financial instruments.

Financial Risk Manager Handbook, + Test Bank: FRM...

Paperback

$$$$

Financial Risk Manager Handbook (Wiley Finance 406)

Kindle Edition

$$$$

Asset Management: Tools And Issues

Save

Provides a comprehensive overview of the credit risk modeling process, including the use of CDS and other credit derivatives. It valuable resource for anyone who wants to learn more about this important topic.

Asset Management: Tools and Issues

Hardcover

$$$$

Asset Management: Tools And Issues

Kindle Edition

Fundamentals of Futures and Options Markets, Global...

Save

This textbook provides a comprehensive overview of the options, futures, and derivatives markets. It valuable resource for anyone who wants to learn more about these complex financial instruments.

Fundamentals of Futures and Options Markets, Global...

Paperback

$$$

The Learning and Teaching of Calculus

Save

This textbook provides a comprehensive overview of the derivatives market. It valuable resource for anyone who wants to learn more about these complex financial instruments.

The Learning and Teaching of Calculus

Paperback

Check price

The Learning and Teaching of Calculus

Kindle Edition

Check price

Fixed Income Mathematics, Fifth Edition: Analytical...

Save

This textbook provides a comprehensive overview of the fixed income securities market. It valuable resource for anyone who wants to learn more about these complex financial instruments.

Fixed Income Mathematics, Fifth Edition: Analytical...

Hardcover

$$$

Fixed Income Mathematics, Fifth Edition: Analytical...

Kindle Edition

$$$

Risk Management and Financial Institutions

Save

This textbook provides a comprehensive overview of the financial risk management process. It valuable resource for anyone who wants to learn more about this important topic.

Risk Management and Financial Institutions (Wiley...

Hardcover

$$$

Risk Management and Financial Institutions (Wiley...

Kindle Edition

$$$

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