Credit Exposure and How It Is Reduced

A profitable trade is a receivable, and a receivable is only worth something if the other side survives to pay it. This course measures that exposure across the life of a trade, then shows exactly how much netting and collateral remove.

₹499/- ₹0

Offer ends in 5 days

1,000 seats total 267 left

733 already enrolled

Six things you will be able to do

Go past the mark to market number. Learn what you stand to lose if the other side fails, and how much of it can be removed.

01 Separate current from future exposureWhat you are owed today against what you could be owed later.
02 Build the exposure profileHow exposure rises and falls across the life of a trade, and where it peaks.
03 Apply nettingWhy offsetting trades under one agreement collapse into a single number.
04 Post and read collateralThresholds, minimum transfer amounts, haircuts, and the gap collateral leaves.
05 Understand wrong way riskWhen exposure grows precisely as the counterparty weakens.
06 State the residualWhat remains after every mitigant is applied, written down as a number.
The outcome

What changes after this course

You stop reading a position as money owed and start reading it as money owed conditionally, on the other side still being there to pay.

An exposure profile built across the full life of a trade, peak included

Netting and collateral applied, with the reduction from each one measured

The residual exposure stated plainly, after every mitigant has been used

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