My experience as a credit risk analyst in the corporate banking division of one of the leading banks in India did certainly nothing to make me comfortable with this course though one would think it should. The objective of the course included understanding credit risk , how it is traded, how it is priced, the instruments for managing credit exposure and the different approaches to assessing default risk.

Prof Stephen Schaefer covered a wide range of topics spanning structural models to credit default swaps and their pricing as well as single name/basket derivatives, finally concluding with recent developments and the future of credit markets. Though initially it was a bit too much to digest, as the classes progressed and the concepts understood, it miraculously translated into time consuming, yet simple computations! If you manage to make notes of the lecture slides along with practicing the sample papers discussed by the Prof, there is nothing to fear. It becomes a bit too much if put off to the last minute. Prof is always there to lend his full support and guidance towards understanding the concepts better. It is up to us to take advantage of this rare and invaluable opportunity.

What began with reluctant indulgence (since I took up the course more on peer pressure than personal conviction) ended up becoming one of the most important courses I’ve done at LBS. The takeaways from this  course for a former corporate banker have been indisputably priceless. Since we now operate in a world of credit derivatives, it is imperative to understand the dynamics of the same irrespective of the nature of our job. I thouroughly enjoyed all of Prof Stephen’s classes!!!

2 Responses to “Credit Risk: From Reluctant Indulgence to Fulfilling Reward”

  1. avatar deepika says:

    hey gayathri

    awww don’t worry girl :) you will start enjoying it too :) i don’t know anyone from whom i can clear my queries .actualy i wanted to talk to lbs student only . so i have so many questions. Is it easy to get scholarship in lbs london? and how much gmat score you need to get into lbs ? nd please guide me how to study for gmat nd what should be referred? as i m an indian so how much time before i should start with my application procedure like i want to start my mba in 2015 may ?
    please please do reply ..

    Regards
    Deepika

  2. avatar MBA says:

    Many a times students get engrossed in taking notes and this is wherein there listening skills go low due to the communication barrier. A proper balance between listening to lecturers and taking notes is necessary for best performance in exam and professional world.