PT - JOURNAL ARTICLE AU - Jouahn Nam AU - Alan L. Tucker AU - Jason Z. Wei TI - Credit Gadgets AID - 10.3905/jfi.2003.319340 DP - 2003 Mar 31 TA - The Journal of Fixed Income PG - 65--72 VI - 12 IP - 4 4099 - https://pm-research.com/content/12/4/65.short 4100 - https://pm-research.com/content/12/4/65.full AB - A credit gadget is a theoretically cost-free portfolio of pure discount securities accommodating a desired exposure to a particular region of the local credit spread surface. The local credit spread surface is a graphical representation of forward credit spread term structures and forward credit spread skews. Fixed-income investors can use the credit gadget introduced here to hedge forward credit spreads and skews, or to speculate on a particular region of the local credit spread surface while obviating exposure to other regions.