Credit derivatives
KOTHARI, VINOD
Credit derivatives Device of credit risk mitigation and synthetic trading in credit - 2013 - 901-905
Credit derivative is an OTC derivative instrument that seeks transfer the risk of default or movement in credit spreads of an entity. Credit spreads refelct the credit risk of a party and hence, by allowing a trade in credit spreads, credit derivatives allow generalised trade in credit spreads, credit derivatives can be used both for hedging and trading, and in fact, have been extensively used for tradng rather than for hedging.
CREDIT
332.7
Credit derivatives Device of credit risk mitigation and synthetic trading in credit - 2013 - 901-905
Credit derivative is an OTC derivative instrument that seeks transfer the risk of default or movement in credit spreads of an entity. Credit spreads refelct the credit risk of a party and hence, by allowing a trade in credit spreads, credit derivatives allow generalised trade in credit spreads, credit derivatives can be used both for hedging and trading, and in fact, have been extensively used for tradng rather than for hedging.
CREDIT
332.7