This lecture introduces students to the CDO and CDS markets. We'll talk about the structure of the markets, and describe how they are affecting Ireland at the moment. Here's a 3 slides per page handout, and the slides are below.
Readings
Mike Jakola, Credit Default Swap Index Options
Credit Default Swaps: The Next Crisis?
CDS Data for European Options (ht. Baseline Scenario)
Next lecture: The European Central Bank & Investor Behaviour. Reading: Buiter, W: Why the United Kingdom Should Join the Eurozone.