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Financial Derivatives - Class 9 - Credit Derivatives

Patrick Boyle 2:04:34

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A credit derivative is a type of financial instrument designed to separate and transfer the credit risk or the risk of an event of default of a corporate or sovereign borrower, transferring it to an entity other than the lender or debtholder.

Usually these contracts are traded pursuant to an International Swaps and Derivatives Association (ISDA) master agreement.

In this class we learn about credit default swaps, asset backed securities, and credit default obligations amongst others.

Lecture nine of a ten lecture series from March 2020. Todays video is designed to replace a live lecture that has had to move online due to student health concerns around large gatherings due to the coronavirus epidemic.


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