1. I. Origination
a. Fundamentalsof creditrisk
i. What iscreditrisk?
ii. Typesof transactionsthat create creditrisk
iii. Who isexposedtocreditrisk?
iv. Why manage creditrisk?
b. Governance
i. Guidelines
ii. Settinglimits
iii. Skills
iv. oversight
c. Checklistfororigination
i. Doesthe transactionfitintomy strategy?
ii. Doesthe risk fitintomyexistingportfolio?
iii. Do I understandthe creditrisk?
iv. Doesthe sellerkeepaninterestinthe deal?
v. Are the propermitigantsinplace?
vi. Is the legal documentationsatisfactory?
vii. Is the deal pricedadequately?
viii. Do I have the skillstomonitorthe exposure?
ix. Is there anexitstrategy?
II. Creditassessment
a. Measurementof creditrisk
i. Exposure
ii. Defaultprobability
iii. The recoveryrate
iv. The tenor
v. Directvs. contingentexposure
vi. The expectedloss
b. Dynamiccreditexposure
i. Long termsupplyagreements
ii. Derivative products
iii. The economicvalue of a contract
iv. Mark to marketvaluation
v. Value atrisk
c. Fundamental creditanalysis
i. Accountingbasics
ii. A typical creditreport
iii. Agencyconflict,incentives,andMerton’sview of default risk.
d. Alternativeestimationsof creditquality
i. The evolutionof anindicator: Moody’sanalyticsEDF
ii. Creditdefaultswapprices
iii. Bondprices
e. Securitization

2. i. Assetsecuritizationoverview
ii. The collateral
iii. The issuer
iv. The securities
v. Main families of ABS
vi. Securitizationforrisktransfer
vii. Creditriskassessmentof ABS
viii. Warehousingrisk
III. Portfoliomanagement
a. Creditportfoliomanagement
i. Level 1
ii. Level 2
iii. Level 3
iv. Organizational setupandstaffing
v. The IACPM
b. Economiccapital and creditvalue atrisk
i. Capital: economic, regulatory,shareholder
ii. Defininglosses: defaultversusmarktomarket
iii. Creditvalue atriskor CVaR
iv. Creatingthe lossdistribution
v. Active portfoliomanagementandCVaR
vi. Pricing
c. Regulation
i. Doingbusinesswitharegulatedentity
ii. Doingbusinessasa regulated entity
iii. How regulationmatters: keyregulationdirectives
d. Accountingimplicationsof creditrisk
i. Loan impairment
ii. Loan lossaccounting
iii. Regulatoryrequirementsforloanlossreserves
iv. Impairmentof debtsecurities
v. Derecognitionof assets
vi. Consolidationof variable interestentities
vii. Accountingfornetting
viii. Hedge accounting
ix. Creditvaluationadjustments,debitvaluationadjustmentsandowncreditrisk
adjustment
x. IFRS7
IV. Mitigationandtransfer
a. Mitigatingderivative counterpartycreditrisk
i. Measurementof counterpartycreditrisk
ii. Mitigationof counterpartycreditriskthroughcollateralization
iii. Legal documentation
iv. Dealersversusendusers

3. v. Bilateral transactionsversuscentral counterpartyclearing
vi. Prime brokers
vii. Repurchase agreements
b. Structural mitigation
i. Transactionswithcorporates
1. Segmentationof the commercial loanmarket
2. Seniorversusjuniordebt
3. Securedversusunsecuredloans
4. Covenants
5. Eventsof default
ii. Transactionswithspecial purpose vehicles
1. Impact of structural mitigantsondefaultprobability
2. Impact of structural mitigantsonrecoveryrates
3. Senior/subordinatedstructures
4. Creditenhancement
c. Creditinsurance,suretybondsandlettersof credit
i. Creditinsurance
ii. Suretybonds
iii. Lettersof credit
iv. The provider’spointof view
d. Creditderivatives
i. The product
ii. The settlementprocess
iii. Valuationandaccountingtreatment
iv. Uses of CDS
v. Creditdefaultswapsforcreditandprice discovery
vi. Creditdefaultswapsandinsurance
vii. Indexes,loanCDs,MCDSs,andABS CDSs
e. Collateral debtobligations
i. What are CDOs?
ii. Collateralizedloanobligations
iii. Arbitrage CLOs
iv. Balance sheetCLOs
v. ABS CDOs
vi. Creditanalysisof CDOs
f. Bankruptcy
i. What isbankruptcy?
ii. Pattersof bankruptcompanies
iii. Signalingactions
iv. Examplesof bankruptcies