2 Asset swap spread as a pricing benchmark

5 Funding cost differences

6 Discounted bonds – additional capital at risk

8 Quantitative pricing models

12 Calculating the mark-to-market value

14 CDS MTM sensitivities

18 Mechanisms for unwinding CDS

20 Appendix 1: Basic Equations in Quantitative Pricing Models

21 Appendix 2: Bootstrapping Hazard Rates

23 Appendix 3: Pricing CDS - A Practical Example