Research On The Development And Pricing Method Of Credit Default Swap In China

As the economic developing over the years,we have made some achievements.Such as,the RMB become one of the basal money of the basket of Special Drawing Rights(SDRS);and of course " the Belt and Road " strategy is also an important event in China even in the world.But,in the domestic market,there are all kinds of risks,not to mention the global financial world.So,the understanding and fair using of the risk management tools could be an escort for the economic development.This thesis is talking about the risk management tool-Credit Default Swaps.Credit Default Swaps is one type of credit derivatives which can be used to transfer credit risk,sometimes even could be used to hedge.However,the development of credit default swaps in China is not long,so it is necessary to discuss the development and pricing of Credit Default Swap in China.The main purpose of the thesis is analyzing the development of Credit Default Swaps in China.Meanwhile,the pricing method of Credit Default Swaps will also be talked about.This thesis mainly studies the similarities and differences of Credit Default Swaps in China and the western.Start from the history of Credit Default Swaps,and then talk about the development of Credit Default Swaps process,present situation and prospects.Considering China’s macro and micro economic environment,raise the urgency of the development of Chinese Credit Default Swaps.And then,the pricing method of Credit Default Swaps is analyzed from a practical point of view.This chapter discussed three models,the Probability model,the no-Arbitrage model and the Copula model.Finally,by analyzing the advantages and disadvantages of the various methods through the real examples,some suggestions and the optimal method for the pricing of Credit Default Swaps which meeting the China’s conditions are analyzed.