This chapter explains how the main types of credit derivatives work and how they are valued. Central to the valuation of credit derivatives is an estimation of the probability that reference entities will default. The chapter discusses both the risk-neutral probabilities of default implied from...

Due to firms' lack of creditworthiness and collateral, banks have imposed loan limits as a result of risk-control regulations in bank financing. As such, loan insurance has emerged as a useful instrument to lift loan limits. To study the joint value of bank loans and loan insurance, this article...

COVER -- CONTENTS -- Overview of Lending Activity -- Principles and Objectives of Credit Management -- Credit Policy in Banks -- Regulatory Framework -- Prudential Norms -- Types of Borrowers -- Credit Evaluation - Working Capital Finance -- Credit Evaluation -Term Loans -- Dynamics of Foreign...