Definition of credit derivative in English:

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credit derivative

noun

Finance
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

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