The Art of credit derivates shows practitioners how to put a frame work in place which will support the securitization activity. by showing the models that support this activity and linking them with very practical examples, the authors show why a mind-shift within the quant community is needed - a move from simple modeling to a more hand son mindset where the modeler understands the trading implicitly.

The book has been written in five parts, covering the modeling framework; single name corporate credit derivatives; multi name corporate credit derivatives; asset backed securities and dynamic credit portfolio management.

Coverage includes:

• groundbreaking solutions to the inherent risks associated with investing in securitization instruments
• how to use the standardized credit indices as the most appropriate instruments in price discovery processes and why these indices are the essential tools for short term credit portfolio management
• why the dynamics of systemic correlation and the standardized credit indices are linked with leverage, and consequently the implications for liquidity and solvability of financial institutions
• how Levy processes and long term memory processes are related to the understanding of economic activity
• why regulatory capital should be portfolio dependent and how to use stress tests and scenario analysis to model this
• how to put structured products in a mark-to market-environment, increasing transparency for accounting and compliance.

This book will be invaluable reading for Credit Analysts, Quantitative Analysts, credit Portfolio Mangers, Academics and anyone interested in these complex yet important markets.