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:
- 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 ...
- 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, ...
- 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 ...
- 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 ...
- 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 ...
- 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 ...
- 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.
- 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 ...