ABSTRACT
INTRODUCTION is chapter examines several relatively novel and innovative areas of trading, beginning with in ation-linked instruments. Equity basket trading comes next. CBs are then discussed, and a need for modelling equity and credit instruments in a uniform framework is encountered. e subsequent section introduces those models and shows how they can be applied to arbitrage trading, CB modelling and the analysis of loan portfolios. Finally, we discuss new products in general and how their introduction can be managed.
