The entity that is the underlying for a credit default swap (CDS) or a similar structure. The entity is the issuer of the bond or obligation that is the subject matter of a swap. For example, in a single-name credit default swap, there is only one name for which the credit protection is being transferred from the protection seller to the protection buyer.
A company may have many bond issues outstanding. Any one of these issues could be the reference obligation for a single-name CDS. Typically, the underlying for a single-name CDS involving a corporate entity is a reference entity. A CDS may also involve more than one name, in which case it is said to be a multi-name CDS. This structure allows counterparties to trade credit risk of portfolio of obligations (such as corporate bonds) subject to credit risk.
A name is also known as a reference issuer, a reference obligation, a reference entity, etc.
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