📝 One-liners · 65 cards
CREDIT DERIVATIVES
What is a credit derivative?
A credit derivative is a financial contract that allows one party to transfer credit risk of an underlying asset to another party without transferring the asset itself.
What is a credit event in the context of a CDS contract?
A predefined trigger event causing CDS payout to protection buyer.
What is a Credit Default Swap (CDS)?
A CDS is a bilateral contract where the protection buyer pays periodic premiums to the protection seller, who compensates the buyer if a specified credit event (such as default) occurs on the reference entity.
What is a single-name CDS?
A CDS referencing credit risk of one specific entity only.
🔒
Unlock 65 revision one-liners
Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for CREDIT DERIVATIVES.
🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days