Stulz, Credit Risks and Credit Derivatives is a 50 minute instructional video analyzing the following concepts:

* Using the Merton model, calculate the value of a firm’s debt and equity and the volatility of firm value.

* Explain the relationship between credit spreads, time to maturity, and interest rates.

* Explain the differences between valuing senior and subordinated debt using a contingent claim approach.

* Explain, from a contingent claim perspective, the impact of stochastic interest rates on the valuation of risky bonds, equity, and the risk of default.

* Compare and contrast different approaches to credit risk modeling, such as those related to the Merton model, CreditRisk+, CreditMetrics, and the KMV model.

* Assess the credit risks of derivatives.

* Describe a credit derivative, credit default swap, and total return swap.

* Explain how to account for credit risk exposure in valuing a swap.