The article discusses various tools developed for managing credit risk in financial markets. These tools help in pricing credit default swaps, collateralized debt obligations, and other credit risk portfolios. The researchers used market spreads and historical default frequencies to calculate probabilities of default and loss given default. They also created models to simulate cash flows and evaluate risk measures like credit value at risk and future potential exposure. The key findings include calculating market implied default probabilities, theoretical CDS spreads, and pricing CDO tranche securities.