Definition of credit derivative in English:

credit derivative

Line breaks: credit de¦riva|tive

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
    • 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.

More definitions of credit derivative

Definition of credit derivative in:

Get more from Oxford Dictionaries

Subscribe to remove ads and access premium resources

Word of the day tortie
Pronunciation: ˈtôrtē
noun
a tortoiseshell cat