Contrary to most traditional Introductory Finance text books my book Finance (see picture on the right or link here) contains a chapter on credit (including credit derivatives). Moreover, I added in the preface of the book that I thought this was going to be the norm in the future. In 2007 I wrote:
“……contrary to typical introductory Finance textbooks, a chapter on Credit is included. ..... It is quite likely that most introductory Finance textbooks will include such a chapter in the future.”
I am happy to see in Financial Times the other day that the well known Finance professor from UCLA, A. Subrahmanyam, agrees. He says in an interview that he discusses credit and credit derivatives in his introductory class. In the article Schools learn from financial crisis and switch tracks FT writes:
“Avanidhar Subrahmanyam, a finance professor at the Anderson School of Management at UCLA, teaches an introductory finance class for first-year students. In the past, his course focused on stocks and bonds, but today it includes in-depth discussions about credit default swaps, mortgage-backed securities and collateralised debt obligations.”
It’s nice to have support from such prominent people. Also notice that Subra teaches introductory classes! UCLA seems to agree with us that full professors, if possible, should teach at the lower levels.