HKU Credit Default Swaps and Credit Risk Discussion
1. What are the main concerns of credit default swaps (CDS)? Should average people
care about CDS? Why will a CDS market be useful to China? What are the main hurdles
for the development of credit derivatives market in China? How can credit derivatives
be useful? Please describe funding arbitrage with total return swaps.
2. Please explain the main economic reasons for securitization (e.g., collateralized debt
obligations, CDO) in terms of addressing market imperfections. What are the unique
features of securitization in China?
3. Please describe the uses of FinTech in general and the applications to the credit
markets. What are your main concerns on its development?
4.which part of the previous homework is useful, which part is
less valuable, what you wish to have been taught, and whether you have achieved your
learning objectives. You may feel free to provide other relevant feedback (around 400 words)
