of Credit Derivatives
Derivatives: Market Info and awareness
Our other sites:
Copyright: All materials on this site, unless otherwise specified, are sole intellectual property of Vinod Kothari and their reproduction in any form is a violation of copyright law.
Funded derivative: A
credit derivative where the protection buyer not only transfers credit risk in
the reference asset but also raises upfront cash by issue of credit linked notes
or a like instrument. In the event of a risk, the protection seller will have to
compensate the protection buyer from out of such cash held by the protection
buyer. Contrast with unfunded derivative.