FINANCIAL MARKET COURSES
Japanese Equity Market
Receivable Finance (New)
Lending - An Introduction
The Lending Cycle
Commodities - An Introduction (Revised)
Commodities - Trading (New)
Commodities - Livestock (New)
Commodities - Softs (New)
Primer – MiFID II/MiFIR (New)
Understanding Private Wealth Management Business
Private Wealth Management Products & Services
Primer – Smart Beta (New)
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Credit Risk Mitigation – Other Types of Mitigant
While collateral remains a common form of credit risk mitigation (CRM), it is not always suitable in every situation. Lenders and regulatory authorities have come to recognize the usefulness of alternative mitigation techniques.
This course examines other CRM tools and techniques that are used by banks and other lenders. It begins by describing the use of netting, which – like collateral – is a type of funded CRM technique. The course then describes the use of a number of unfunded credit risk mitigants, namely guarantees/standby letters of credit, credit insurance, and credit derivatives. Finally, the course looks at the eligibility of the various CRM techniques for lowering capital requirements under the Basel framework.
On completion of this course, you will be able to:
• Describe the different types of credit risk mitigation (other than collateral) that can be used to reduce credit risk exposure
Topic 1: Other Types of Mitigant
o Payments (Settlement) Netting
o Netting by Novation (Replacement Netting)
o Close-Out Netting
o Netting Example
o Guarantees vs. Standby Letters of Credit
• Letters of Comfort
• Credit Insurance
o Cross-Border (Export Credit Insurance)
o Benefits & Risks
• Credit Derivatives (Credit Default Swaps)
o Benefits & Risks
• Credit Risk Mitigants & Basel III
Credit Risk Mitigation – Collateralization - View Now
ESTIMATED COMPLETED TIME
Credit Risk Mitigation - Management & Realization
This course looks at the key stages involved in effectively managing mitigants taken in support of a loan or other credit facility. It begins by outlining the assessment and approval stages of proposed mitigation, and the differences between disclosed and undisclosed mitigation.
Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.
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