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credit derivative Line breaks: credit de¦riva|tive

Definition of credit derivative in English:

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.

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