{"product_id":"credit-risk-in-selected-derivative-instruments-von-willem-reitsma","title":"Credit Risk in Selected Derivative Instruments","description":"\u003cp\u003eDerivative instruments are used daily by banks to  provide hedging to clients and to generate profits  from trading. To facilitate the use of derivatives,  credit facilities are allocated to clients and  counterparties. The methods to determine the credit risk associated  with these instruments have gone through a number of  evolutionary phases. The first phase involved the  use of the notional amount of the outstanding  derivative instrument. The second phase involved a  percentage of the outstanding notional amount of the  derivative instrument. The third phase involved the  marked-to-market value of the instrument and was  further expanded to include a value for the  potential future exposure during the remaining life  of the outstanding instrument. The fourth phase and  current phase involves the aggregation of a  counterparty''s risk across different instrument  types taking into consideration correlation of price  factors to arrive at a net exposure. This study was undertaken to discuss these phases as  they are applicable to two derivative instruments.  These intruments are interest rate swaps and forward  foreign exchange contracts.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783838307312\"\u003e\u003ch3\u003eUnderstanding credit risk and the various methods of determining the credit risk in Foreign Exchange Forward Contracts and Interest Rate Swaps\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783838307312","offer_id":39497100230749,"sku":"9783838307312","price":79.0,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/325250ff-6d8a-4fd5-b573-9861c4261fcc.jpg?v=1775884647","url":"https:\/\/shop.autorenwelt.de\/en\/products\/credit-risk-in-selected-derivative-instruments-von-willem-reitsma","provider":"Autorenwelt Shop","version":"1.0","type":"link"}