of Credit Derivatives
Derivatives: Market Info and awareness
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value payout A
payout structure in a credit derivative transaction where the protection
seller will pay to the protection
buyer the par value or nominal value of the reference
asset, and in turn, acquire the reference asset or another deliverable obligation from the protection buyer. In other words,
the protection seller provides full protection against any deficit in the
recovery value of the reference asset. Compare with binary payout.