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Credit-Linked Hybrid

A combination of an interest-bearing debt security or instrument and a credit default swap. The face value or principal amount...

Capped Floater

A floating-rate note (floater) which entails the payment of a coupon only up to a preset maximum level of the...

CSA

It stands for credit support annex; a collateral arrangement the purpose of which is to mitigate counterparty risk in an...

Credit Support Annex

A collateral arrangement the purpose of which is to mitigate counterparty risk in an OTC derivative contract such as swaps....

CCDS

It stands for contingent credit default swap; a credit default swap (CDS) which is “contingent” upon the setting-off of two...

Contingent CDS

A credit default swap (CDS) which is “contingent” upon the setting-off of two triggers. The first, as in an ordinary...

Contingent Credit Default Swap

A credit default swap (CDS) which is “contingent” upon the setting-off of two triggers. The first, as in an ordinary...

Credit Contingent Knock-Out Trade

A trade that deactivates (typically with zero-recovery) if either party defaults regardless of which is in the money. It also...

Credit Extinguisher

A trade that deactivates (typically with zero-recovery) if either party defaults regardless of which is in the money. It also...

Credit Exposure

Counterparty credit risk is a source of great concern for end users and dealers in the swaps market (market for...