Zins- und Kreditderivate als Instrumente der Risikosteuerung

Thesis from 2005 in the field of Business Administration - Investment and Financing, grade: 1.7, FOM Essen, University of Economics & Management non-profit GmbH, University Management Essen formerly University of Applied Sciences, Language: German.

Abstract: High levels of new debt and a large credit portfolio are often unavoidable in financial management. Therefore, efficient risk management must create opportunities to reduce the risks associated with high new debt and a large credit portfolio. Significant uncertainties include interest rate risks and counterparty default risks, which can negatively impact the situation of various market participants. These risks increase with the rise in liabilities and receivables, thus representing a persistently critical factor for future financial management. Consequently, the use of risk hedging should be indispensable. High interest rate volatility and a deterioration in the creditworthiness of business partners have recently contributed to the development of innovative financial instruments in the form of interest rate and credit derivatives. This paper examines whether the use of interest rate and credit derivatives as risk management tools for various market participants is necessary. Initially, an overview of the use of interest rate and credit derivatives as risk management instruments across different user groups is provided. Based on the existing application forms, recommendations are developed specifically for municipalities and small to medium-sized enterprises, as the use of derivatives in these target groups has so far been very limited.