THOUGHT FOR THE DAY

Love

"A very small degree of hope is sufficient to cause the birth of love."

- Henri B. Stendhal

TOPIC OF THE DAY

Credit derivatives

In finance, a credit derivative is a derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the transaction itself. This entity is known as the reference entity and may be a corporate, a sovereign or any other form of legal entity which has incurred debt. Credit derivatives are bilateral contracts between a buyer and seller under which the seller sells protection against the credit risk of the reference entity.

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LATEST ARRIVALS

Credit derivatives and structured credit trading by Vinod Kothari