One of the risks of making a bank loan or investing in a debt security is credit risk, the risk of borrower default. In … response to this risk, new financial instruments called credit derivatives have been developed in the past few years. Credit … derivatives can help banks, financial companies, and investors manage the credit risk of their investments by insuring against …

Diversification is widely practiced by investors seeking to reduce risk. In recent years investors have been turning to … security portfolios, however, also comes an additional risk-foreign exchange risk. ; The use of currency derivatives in … internationally diversified portfolios can help mitigate foreign exchange risk. This article investigates the impact of currency …

clear indication of how derivatives are used to manage interest rate risk, or whether they are used to increase or reduce … that risk. …