A Primer on Credit Derivatives

On 24th January 2023 Indus Business Academy organized a guest lecture on ‘A Primer on Credit Derivatives.’ by Dr. Mohammad Belgami.

Mr. Belgami explained credit derivatives to us, including what they are, why we use them, how to invest in them, and their potential uses. He also provided us with information about credit derivatives, which are financial agreements that let parties to reduce their exposure to credit rise.

He also talked about OTC, or Over the Counter, which is a transaction between two parties that are in a debtor/creditor relationship. Also, he made note of “Risk Management and Capital Reduction.”

He also talked about how credit derivatives can let investors take on more risk by increasing their credit exposure. Also, he talked about securities and collateral loan obligations.

We are profoundly educated by Mr. Belgami’s words. We are honoured and grateful to have Mr. Belgami as our guest, and we look forward to many more occasions like this.