Credit Derivatives: Trading, Investing and Risk Management, Second Edition

Preface to the Second Edition

In writing the second edition I have tried to keep to the objectives and style of the first edition while updating the content and, additionally, broadening the standpoint from which the book is written. Specifically, the examples have been updated and enhanced, and Parts I and II have been amended where relevant to bring them up to date. Additional text has been included to cover syndicated loans, LCDS, up-front premiums, and other changes to the CDS market, and further background has been included in Part I on terminology, investment perspectives and the ‘credit crunch’. Part III has been restructured and largely rewritten, including material on LCDOs, cashflow CDOs and structurings as well as significantly enhanced descriptions of the standard and bespoke CDO products and valuation and risk methodology. New sections (Part V and VI) have been added covering aspects of model testing and implementation, and the credit crisis respectively.