Course 2025 - Errors in BT Materials - Topic 1 Foundations of Risk

[Nicole Seaman]

Please use this thread to let us know about any errors, missing/broken links, etc., that you find in the 2025 materials in Topic 1, Foundations of Risk. This keeps our forum organized. We appreciate your cooperation!

PLEASE NOTE: Our Practice Question sets already have links to their specific forum threads where you can post about any errors that you find. This thread is for any other materials (notes, spreadsheets, videos, etc.) where you might find errors.

Please include this information in your post so we can correct errors:

• Chapter
• Page number
• Specific details about the error

 

[Neptune]

Nicole, David,

Hope this belongs here, relates to slides and the corresponding video, namely the P1.T1. Chapter 4 Credit Risk Transfer Mechanisms material. I'm not 100% sure of these being errors but here goes:

T1FRM4Ch4CRTM_v3.pdf: Slide 22 states that for a TRS, the "buyer makes payments of SOFR..." and the "seller makes payments to the buyer in the form of some total return measure...". However, the graph on slide 23, shows the opposite, i.e. buyer pays the seller the underlying asset return, while the seller makes fixed SOFR-based payments. Maybe it works both ways (as a feature of a swap..?) but this is confusing me as a reader. Video describes the slides at face value and makes no mention of whether or not this is an error.

In the related video on slide 27 for a CLN, at the 23:30 mark, the leverage is calculated erroneously as 17x, though 105 / 15 = 7x leverage, no?

Thank you!