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
Syllabification: cred·it de·riv·a·tive
Definition of credit derivative in:
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