In the past two years, trading in credit derivatives - deals that transfer credit risk between parties - has doubled to US$10 billion per day. This market explosion is being driven by professional investors and loan managers at banks, insurance companies, hedge funds, corporations and third-party asset managers who use credit derivatives to generate income and to hedge against risk. Everyone from Alan Greenspan to Warren Buffet has an opinion on how credit derivatives are changing markets. In the decade since the credit derivatives market started, financial professionals have become more sophisticated than most of the books on the subject. Credit Derivative Strategies closes the gap, with state-of-the-art techniques for picking credit hedge funds, analysing event risk, identifying relative value opportunities and choosing synthetic CDOs (securities created from loan portfolios).
