Credit derivative — In finance, a credit derivative is a securitized derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the… … Wikipedia
credit derivative — Contractual arrangements that allow one party to transfer credit risk of a reference asset, which it may or may not own, to one or more counterparties. The first party may be called the protection buyer , the beneficiary or the originator . The… … Financial and business terms
credit derivative — kredito išvestinė finansinė priemonė statusas Aprobuotas sritis Finansai apibrėžtis Finansinė priemonė, naudojama pagrindinės pozicijos kredito rizikai apdrausti, kai ši rizika perduodama trečiajai šaliai, bet nuosavybės teisės į pagrindinę… … Lithuanian dictionary (lietuvių žodynas)
Credit Derivative — Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of… … Investment dictionary
unfunded credit derivative — United Kingdom A credit derivative in respect of which the seller of the credit protection under the credit derivative makes no upfront payment to cover its potential future liabilities. Under an unfunded credit derivative, the seller will make a … Law dictionary
funded credit derivative — United Kingdom A credit derivative which is structured so that the seller of the credit protection under the credit derivative makes upfront payments to cover its potential future liabilities. Related term unfunded credit derivative Practical Law … Law dictionary
Credit Derivatives — Derivative instruments created to separate the credit risk of a borrower from overall market risk. A purchaser of a bond buys a credit derivative to cover the risk of the bond s debtor defaulting. Effectively the seller or writer of the credit … Financial and business terms
credit default swap — A contract between a credit protection seller (seller) and a credit protection buyer (buyer) where, in consideration of the buyer paying the seller an agreed fee, the seller agrees to pay out agreed sums to the buyer if certain credit events… … Law dictionary
credit default spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a … Law dictionary
credit default swap spread — USA credit default spread, Also known as a credit default swap spread or a credit spread (or sometimes, simply, the spread). In derivatives, an amount, typically specified in basis points, above LIBOR that a … Law dictionary
