Exchange Currency

credit derivative

A contract between two parties that allows for the use of a derivative instrument to transfer credit risk from one party to another. The party transferring risk away has to pay a fee to the party that will take the risk.

Related information about credit derivative:
  1. Credit derivative - Wikipedia, the free encyclopedia
    In finance, a credit derivative refers to any one of "various instruments and techniques designed to separate and then transfer the credit risk" of the underlying ...
     
  2. Credit Derivative Definition | Investopedia
    Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, ...
     
  3. Credit Derivative
    A credit derivative is an OTC derivative designed to transfer credit risk from one party to another. By synthetically creating or eliminating credit exposures, they ...
     
  4. Credit Derivative - Financial Dictionary - The Free Dictionary
    Financial instruments in which the payoffs depend on the credit risk of companies or government entities, other than the counterparties to the credit derivative ...
     
  5. the jp morgan guide to credit derivatives - Investing In Bonds
    substance, the definition of a credit derivative given above captures many credit ... (tenor, seniority, compensation structure) of the credit derivative transaction ...
     
  6. Credit Derivatives - Federal Reserve Bank of Atlanta
    A credit derivative is an agreement designed explicitly to shift credit risk between the parties; its value is derived from the credit performance of one or more ...
     
  7. What is credit derivative? definition and meaning
    Definition of credit derivative: A contract between two parties that allows for the use of a derivative instrument to transfer credit risk from one party to another.
     
  8. What is credit derivative (CD)? definition and meaning
    Definition of credit derivative (CD): Option or swap contract which serves as a hedge or insurance policy, and whose payoff depends on risk factors associated ...