Credit Derivative

| |Conditions leading to development of Credit Derivative Market in India | | | | | |Credit derivatives are contracts seeking to transfer an assets risk and returns from one counter party| | |to another without transferring the ownership. though these tools currently have a limited presence in | | |India, their merchandise could see an explosive addition given the need for the product and thrust from key | | |areas. The first part of this paper seeks to identify the key areas that mountain provide the much-needed | | |impetus for the growth of reference work derivatives and is followed up by the gains to corporates and banks. | | |Role of Government and topical anaesthetic Regulators in creation of an effective hedge | | |Most Indian nationalized banks are saddled with NPAs to the tune of 5-6% of their total asset base.

| | | effrontery the current disbursement patterns and government policies, NPAs are likely to increase to these | | |banks in the future as well. This creates an obvious need for credit testimonial for these banks. | | |However, in the Indian context, the sell side securities industry is absent. For the segment to develop, the sellers| | |of credit protection need to be capable to hedge their risks, enabling them to quote a price for the | | |protection they are selling. It is in this regard that the government and the local regulators can aid | | |the development of a credit derivative market by providing impetus in the... If you want to get a full essay, order it on our website: Ordercustompaper.com

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