The PricewaterhouseCoopers credit derivatives primer: Total return swaps. From: The Financier | Date: March 22, 2000| Author: Finnerty, John D. | COPYRIGHT 2000 Financier, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

Credit derivatives have the potential to alter fundamentally the way credit risk is originated, priced, and managed; they permit investors to diversify their credit risk exposure; and they enable the credit markets to reallocate credit risk exposures to those market participants who are best equipped to handle them. But as credit derivative use has grown, so has concern about whether users really understand the risks involved and whether these instruments are fairly priced. This pr...