Derive fair-value futures prices at inception, then follow daily variation margin tosee how gains/losses crystallise. Compare futures with equivalent forwards, explorerate-futures versus FRAs, and note how central clearing reshapes counter-partyrisk.

Price and mark-to-market forwards between trade date and expiry—first fornon-income assets, then for instruments with cash flows. Extend the logic tounderlyings that have their own term structures (rates, FX), and master forwardrate agreements (FRAs) as a special case.

Link spot and forward prices through no-arbitrage. Build synthetic forwards bycombining cash positions with borrowing/lending, then adjust for dividends,storage, or FX rate differentials in the cost-of-carry. Understand why forwardprices can trade above or below spot—depending on net carry.

See how issuers hedge earnings, how investors gain cheap leverage or preciseexposures, and where dangers lurk: basis, liquidity, counter-party and systemicrisk. Real examples show futures lowering funding needs and swaps smoothingcash-flow volatility—alongside cautionary tales of excessive leverage.

Firm promises vs. flexible rights: dissect forwards, futures and swaps(linear pay-offs) then contrast them with options and credit derivatives(non-linear, buyer-only choice). Learn how margin, daily settlement and embeddedleverage shape risk, and why put–call parity lets you build a synthetic forward fromtwo options.

Quick tour of the derivatives universe: define what makes a contract aderivative, classify popular underlyings (equities, rates, FX, commodities, credit),and compare OTC versus exchange-traded markets—including how centralcounterparties (CCPs) reduce default risk. By the end you’ll know where eachinstrument trades, why standardisation matters for liquidity, and how margin keepsthe system safe.

From pass-throughs to CMOs we unpack prepayment mechanics, tranche types and commercial vs. residential differences. Understand PSA curves, extension risk and how agencies wrap credit.

Explore structural credit enhancement, tranche waterfalls and trigger tests. Compare classic asset classes—autos, cards—and newer niches like solar leases and whole-business deals.

Follow the pipeline from loan pool to special-purpose entity to tranche. See how credit- and time-tranching reshape risk for issuers and investors, plus the economic case for securitization.

Dive into business risk, moats, management and detailed financial ratios. Finish with recovery analysis across the capital stack and why ratings can lag the market.