of Credit Derivatives
Derivatives: Market Info and awareness
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Deliverable obligation: On the happening of a credit event, in case of a physical settlement, the protection buyer is entitled to deliver to the protection seller any of the deliverable obligations of the reference entity, that is to say, an obligation which ranks at least pari passu with the reference obligation, and answers to other features as specified in the contract, for example, Not Contingent. This allows the protection buyer to reference the credit derivative deal with a broadly-worded obligation such as borrowed money, and deliver an easily available obligation.