of Credit Derivatives
Derivatives: Market Info and awareness
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Credit event: The
event or events specified in the credit derivative transaction based on
which the protection seller
will be required to make credit
event payment to the protection
buyer. The credit events are defined in the credit derivative
agreement. ISDAís standard
documentation includes the following credit events which parties may
choose from, at their discretion: bankruptcy,
failure to pay, obligation default,
obligation acceleration, repudiation
or moratorium and restructuring.
Credit events are not necessarily limited to the commercial understanding
of a default - see default.