Structured Finance Mastery: From Foundations to Derivatives

Welcome to the “Structured Finance Mastery” course, where we delve into the fundamental concepts of structured finance, credit derivatives, and financial instruments. This comprehensive program is designed for beginners seeking a profound understanding of structured finance practices and their role in the financial market.

Section 1: Structured Finance – Beginners Guide

In the first section, “Structured Finance – Beginners Guide,” students will embark on a comprehensive journey into the world of structured finance. The initial lectures cover the foundational aspects, introducing participants to the importance and basic principles of structured finance. The course begins with an overview of credit rating, shedding light on the system that evaluates the creditworthiness of financial instruments. Subsequent lectures delve into more intricate topics such as Credit Default Swaps (CDS), credit events, and the securitization process. Participants gain insights into the historical context of structured finance, examining its roots and development. A closer look at the 2008 financial crisis and its aftermath sets the stage for understanding the evolving landscape of structured finance, including the emergence of new instruments and the concept of tranching.

• Gain an overview of Structured Finance.
• Understand Credit Rating and its significance.
• Explore Credit Default Swap (CDS) and Credit Events.
• Delve into the history of Structurization, including the 2008 Crisis.
• Examine the intricacies of Tranching and various assets.
• Learn about the Securitization process, its benefits, and its role in the financial market.

Section 2: Structured Finance – Credit Derivatives

The second section, “Structured Finance – Credit Derivatives,” builds upon the foundational knowledge acquired in the beginners’ guide. Students explore the diverse applications of derivative markets within structured finance, examining both the asset and liability sides of financial products. The section introduces the concept of credit risk and its implications for structured finance, paving the way for an in-depth exploration of Credit Default Swaps (CDS). Participants gain a comprehensive understanding of CDS, including their definition, pricing mechanisms, and calculation of accrued premium. The section expands to cover broader aspects of credit derivatives, including Bond CDS Equivalence, Credit Linked Notes, and various other instruments like Total Return Swaps, Asset Swaps, and Basket Default Swaps. The exploration of probability calculations related to managing risk across entities concludes the section, providing students with a holistic understanding of credit derivatives in the context of structured finance.

• Explore the uses of Derivative Markets in Structured Finance.
• Understand Credit Risk and its implications.
• Dive into the details of Credit Default Swaps (CDS), including pricing and accrued premium calculation.
• Explore the equivalence between Bonds and CDS.
• Learn about various Credit Derivatives like Credit Linked Notes, Total Return Swaps, Asset Swaps, and Basket Default Swaps.
• Understand probability calculations in the context of Credit Derivatives.

Each section provides a comprehensive understanding of the respective topics, equipping students with valuable insights into the world of Structured Finance and Credit Derivatives.