Credit Derivative

In finance, a credit derivative refers to any one of "various instruments and techniques designed to separate and then transfer the credit risk" or the risk of an event of default of a corporate or sovereign borrower, transferring it to an entity other than the lender or debtholder.An unfunded credit derivative is one where credit protection is bought and sold between bilateral counterparties without the protection seller having to put up money upfront or at any given time during the life of the deal unless an event of default occurs. Usually these contracts are traded pursuant to an ISDA master agreement. Most credit derivatives of this sort are credit default swaps.
Posts about Credit Derivative
  • Bloomberg and UBS clash over Sef aggregation

    … 1,000 index credit default swap (CDS) trades executed daily on Bloomberg Sef, just 30 to 50 of those trades happen via its Clob. It sparked an immediate response from Rana Chammaa, head of rates and credit derivative agency trading sales at UBS. "I would say that it suits Nathan to suggest most of his clients get better pricing by name give-up. He…

    Search Engine Watch- 28 readers -
Get the top posts daily into your mailbox!