CDS Manager: An Educational Tool for Credit Derivative Market

How could we teach the dynamics of new financial instruments, not very much understood and potentially dangerous? In this work we show some limitations of classical financial learning framework, which uses a description of the dynamics through mathematical models, and we propose an alternative approach, based on the agent-based modeling framework. In the model presented, an operator observes, through a simulation, the behavior of other artificial agents in its own market (Liu et al., J Manag Inf Syst 7(1):101–122, 1990; Radicchi et al., Proc Natl Acad Sci USA 101(9):2658–2663, 2004; Yang et al., Int J Electron Commer 6(1):101–102, 2001).