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Default Swap Credit Spread

A credit spread that constitutes an amortized premium for a default-based product (such as a credit default swap, credit option,...

Default Risk

Generally speaking, it is the possibility that firms or individuals would fail to honor their contractual obligations on their borrowed...

Direct Hedge

A hedge transaction that, as opposed to a indirect hedge (dirty hedge or proxy hedge), involves establishing two directionally opposite...

Dynamic Topography

A topography report that shows the stability of a position with the passage of time, in an environment characterized by...

Diagonal Gamma

A type of gamma that measures the rate of change of sensitivity to price with respect to the change in...

Downgrade Trigger

A provision in a derivative contract that stipulates immediate contract termination with a cash settlement if the credit rating of...

Default Swap Spread

In connection with a default swap (or a credit default swap), it is the periodic payment that is made by...

Default Swap Premium

In connection with a default swap (or a credit default swap), it is the periodic payment that is made by...

Delta Cash

A form of delta that quantifies the price change effect in relative terms. Instead of absolute movements (which are typically...

Delta Spread

A ratio spread which is constructed by involving deltas of options such that a neutral “overall” position is created. To...