Definition of credit derivative in English:

Share this entry

credit derivative


A type of derivative in which the risk that a loan will not be repaid is sold to a party other than the lender: credit derivatives act as insurance for a company that invests in a corporate bond or loan
More example sentences
  • Anxiety is high: Big losses in credit derivatives could set off a chain reaction.
  • Credit derivatives depend on the credit worthiness of a company.
  • Credit derivatives are a major accident in the making.

For editors and proofreaders

Line breaks: credit de¦riva|tive

Share this entry

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.