answersLogoWhite

0

A credit derivative is a financial instrument which separates and transfers some of the credit risk of a loan. Some examples of credit derivatives are credit linked notes or credit default swaps.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What is a credit risk when entering into a derivative contract?

Credit Risk. Credit risk or default risk evolves from the possibility that one of the parties to a derivative contract will not satisfy its financial obligations under the derivative contract.


What has the author Manuel Ammann written?

Manuel Ammann has written: 'Credit risk valuation' -- subject(s): Credit, Credit ratings, Management, Risk management 'Pricing derivative credit risk' -- subject(s): Derivative securities, Prices, Mathematical models, Credit, Risk


When capital market is low which type of derivative is applied?

credit default swaps


When would a credit default swap be used?

This method would be used when speculating on how credit worthy the reference is. This term is also referred to as a credit derivative contract, and is used among brokers.


What are derivatives for displaces?

Derivatives for displacement refer to the rate of change of an object's position with respect to time. It can be calculated by finding the first derivative of the position function. The first derivative of displacement gives the object's velocity, while the second derivative gives the acceleration.


What s the derivative of cena in the English?

The term "cena" is Latin for "dinner." In English, its derivative can refer to various contexts, such as culinary discussions or historical references to meals. However, it is not commonly used in everyday English and does not have a direct derivative form in contemporary usage.


Why do credit cards considered money or not considered as money?

Because money consideration is granted credit into card formation bedfellow however the consolidation of the derivative card of credit is pennywise but pound cake foolish


What does one credit hour refer to?

One credit hour is simply one hour.


Is it derivative of or derivative from?

"Derivative of"


How do you find the derivative of a function?

Many different techniques are used for different types of functions. Take a course in calculus. Refer to the link.


What has the author Bernd Schmid written?

Bernd Schmid has written: 'Credit risk pricing models' -- subject(s): Bonds, Credit, Derivative securities, Management, Mathematical models, Prices, Risk management


What is the second derivative of a function's indefinite integral?

well, the second derivative is the derivative of the first derivative. so, the 2nd derivative of a function's indefinite integral is the derivative of the derivative of the function's indefinite integral. the derivative of a function's indefinite integral is the function, so the 2nd derivative of a function's indefinite integral is the derivative of the function.