Teaching note for product 9B10N027.

Credit Default Swaps (CDS) are derivative instruments that allow investors protection against credit events such as downgrades of or defaults by single-name or a basket of obligors. Estimated by the Band of International Settlements to be at $32.6 trillion in December 2009, these instruments represent one of the largest and fastest growing financial product markets globally. This note is intended to introduce students to CDS, the pricing basics as .....more

Spreadsheet for product 9B08N022.

In September, 2005 an investment analyst had recommended to the investment committee of Optimal Funds (the Fund) to invest $10 million in La-Z-Boy, in addition to the $20 million that the Fund had already invested. The analyst believed La-Z-Boy represented strong value yet, having only been on the job less than one year, he knew that he needed to provide sound judgment and analysis to convince the investment committee and to maintain his credibility. .....more

The case discusses the development of Pakistan's economy and the government's decision to privatize many of its government-owned enterprises and focuses on the privatization debate concerning Pakistan's power sector. Illustrated are the many issues and questions concerning government ownership and privatization, the rationales for government ownership as well as justifications for privatization.