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Equity v credit derivatives showdown: Difference between revisions
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{{aai|cdd|{{image|ninja showdown|png|Ninja showdown, yesterday}}}}{{c|Equity Derivatives}}After a long hiatus learning the ways of the {{eqdefs}}, the JC is back in the land of [[credit derivatives]], and has been undertaking remedial ninjery with the sacred texts of the {{cdd}}. You can learn about his travails from [[NiGEL]], in the panel | {{aai|cdd|{{image|ninja showdown|png|Ninja showdown, yesterday}}}}{{c|Equity Derivatives}}After a long hiatus learning the ways of the {{eqdefs}}, the JC is back in the land of [[credit derivatives]], and has been undertaking remedial ninjery with the sacred texts of the {{cdd}}. You can learn about his travails from [[NiGEL]], in the panel. | ||
Here we do the service of comparing, in broad strokes, [[equity derivatives]] with the [[credit derivatives]]. | Here we do the service of comparing, in broad strokes, [[equity derivatives]] with the [[credit derivatives]]. | ||
==Documentation== | |||
Each has its own definitions booklet — {{eqdefs}} and {{cddefs}} respectively — though their genealogies are different. | |||
The {{eqdefs}} were published in 2002 and, while not perfect, do a serviceable enough job at describing what is essentially, and usually, a fairly straightforward product, though they get a bit gummed up about dividends. The product traded is for the most part a [[delta-one]] exposure to shares, share baskets and indices and, while hedging can be fraught in times of dislocation, and hedging costs get passed through to end users, the basic notional value of an equity derivative is not: the market price if a listed share: you can see it printed in 6 point font in the Financial Times every day. | |||
===Overview and capital structure=== | ===Overview and capital structure=== | ||