<i>Copula Methods in Finance</i> is the first book to address the mathematics of copula functions illustrated with finance applications.&#160; It explains copulas by means of applications to major topics in derivative pricing and credit risk analysis.&#160; Examples include pricing of the main exotic derivatives (barrier, basket, rainbow options) as well as risk management issues.&#160; Particular focus is given to the pricing of asset-backed securities and basket credit derivative products and the evaluation of counterparty risk in derivative transactions.