credit protection seller

credit protection seller
USA
credit protection seller, Also known as the protection seller.
The entity (usually a financial institution, fund or insurer) that is obligated to make certain payments under a credit default swap to its counterparty, the credit protection buyer, upon the occurrence of certain events known as credit events. The protection buyer pays a fee to the protection seller, usually a small percentage of the notional amount of the swap, for the right to receive these payments upon the occurrence of a credit event.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • protection seller — USA credit protection seller, Also known as the protection seller. The entity (usually a financial institution, fund or insurer) that is obligated to make certain payments under a credit default swap to its counterparty, the credit protection… …   Law dictionary

  • credit protection buyer — USA credit protection buyer, Also known as the protection buyer. An entity (usually a financial institution or fund) that is entitled to receive certain payments under a credit default swap from its counterparty, the credit protection seller,… …   Law dictionary

  • 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

  • protection buyer — USA credit protection buyer, Also known as the protection buyer. An entity (usually a financial institution or fund) that is entitled to receive certain payments under a credit default swap from its counterparty, the credit protection seller,… …   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

  • credit 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 event — USA An event or circumstance specified in a credit default swap confirmation which obligates the credit protection seller to make certain payments to the credit protection buyer. The credit events most commonly specified are failure of the… …   Law dictionary

  • protection buyer — protection seller Parties in a credit derivatives transaction. See credit derivative, credit swap, credit options and credit linked note. American Banker Glossary …   Financial and business terms

  • Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity …   Wikipedia

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