Turn CDS contract mechanics into practical credit insight
Credit default swaps separate credit exposure from the underlying bond or loan. This live course explains the protection buyer and seller, premium and protection legs, credit-event triggers, settlement choices, spread behavior, and the link between CDS pricing and default risk.
The session at a glance
Format · Live instructor-led webinar or in person Learning objectives · Explain the structure and cash flows of a credit default swap, distinguish physical and cash settlement, interpret CDS spreads, and connect pricing to expected loss and default probability.
Live instruction. Credit risk in contract form.
Work through the premium leg, protection leg, and settlement mechanics using a real CDS structure from Pillars course materials. The instructor connects contract terms to pricing, default probability, expected recovery, and practical credit-risk decisions.
Who this course is for
Designed for credit analysts, fixed-income professionals, risk managers, treasury teams, sales and trading professionals, and finance practitioners who evaluate or manage credit exposure.
Preparation that makes the credit discussion more useful
Bring a bond, loan, issuer, or credit-risk question that you would like to analyze more clearly. Familiarity with basic fixed-income terminology is helpful, but no prior derivatives model is required.
Course agenda
Build from the contract structure to pricing, settlement, and real-world use.
Establish the CDS structure
We identify the reference entity, covered obligation, notional amount, maturity, protection buyer, and protection seller in a standard CDS contract.
Trace the premium and protection legs
We follow periodic spread payments and the contingent payment that arises when a qualifying credit event occurs.
Evaluate credit events and settlement
We compare physical and cash settlement and examine how recovery value affects the amount exchanged after default.
Connect spreads to credit risk
We interpret CDS spreads in relation to expected loss, default probability, recovery assumptions, and changing market views.
Apply CDS in practice
We close by evaluating hedging, relative-value, and risk-transfer applications while recognizing basis, counterparty, and liquidity risks.
A certificate worth sharing
Upon completion, you will receive a certificate signifying your completion. Add it to your LinkedIn profile, résumé, or professional-development record.
Common questions
The practical details, in one place.
Is this live or on demand?
This is a live, instructor-led course delivered as a webinar or in person for a private business or school group.
What does the session cover?
The session covers CDS contract structure, premium and protection legs, credit events, physical and cash settlement, spread interpretation, pricing intuition, and practical risk-management uses.
Are recordings, materials, or certificates included?
Live sessions include the materials used during the program and a certificate of completion. Recordings are not included unless explicitly arranged in advance.
I am a CPA, can this course offer CPE credit?
Yes. Eligible live sessions can be offered for CPE credit when the program is delivered and documented in accordance with Pillars’ CPE policies. Confirm the specific engagement details with Pillars before the session.
Bring practical credit-derivatives training to your team.
Give your team a clear framework for explaining how credit risk is transferred, priced, and settled through credit default swaps.