Wrong Way Risk - An Introduction (FRM Part 1 / FRM Part 2, Book 2, Credit Risk)

[finRGB]

FRM Learning Objectives: 1) Explain how a currency swap can be used to transform an asset or liability and calculate the resulting
cash flows. 2) Describe wrong-way risk and contrast it with right-way risk. 3) Identify examples of wrong-way risk and examples of right-way risk.

[sauravmishra]

You have one of the best way to explain concepts intuitively

[Alexander-pktu]

Thank you for your video. It was very helpful to understand wrong way risk!

[yutongwang]

Excellent sample! save my exam, textbooks never provides clear samples😂

[orjihvy]

Very interesting. Does that mean you would demand even more collateral than if they were independent?