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
- Credit derivatives are a major accident in the making.
- Other application areas are credit derivatives where the payoff is linked to the spread.
- Banks have also pulled in profits in side businesses such as credit derivatives and settling trades for hedge funds.
Definition of credit derivative in:
- The British & World English dictionary