Learning Outcome Statements

1. Basic definitions and concepts

a. describe credit default swaps (CDS), single-name and index CDS, and the parameters that define a given CDS product;

2. Credit events and settlement protocols

b. describe credit events and settlement protocols with respect to CDS;

3. Basics of valuation and pricing

c. explain the principles underlying, and factors that influence, the market's pricing of CDS;

4. Applications of CDS

d. describe the use of CDS to manage credit exposures and to express views regarding changes in shape and/or level of the credit curve;

e. describe the use of CDS to take advantage of valuation disparities among separate markets, such as bonds, loans, equities, and equity-linked instruments.