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Multi-Currency Credit Default Swap

A credit default swap (CDS) that is traded in multiple currencies, i.e., protection, in case of default, is paid by...

Quanto Default Swap

A credit default swap (CDS) in which the swap premium payments, and/or the cashflows in the case of default, are...

Black Box Transaction

A portfolio default swap whose exact composition of obligors is not disclosed to the protection seller (in a credit derivative...

Collateral

A borrower's pledge of a property/ assets to a lender or creditor in order to secure repayment of a loan...

Credit Exposure

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

XVA

In the context of derivatives valuation, it stands for x-value adjustment or cross value adjustment. It is a broad category...

X-Value Adjustment

In the context of derivatives valuation, it stands for cross value adjustment. It is a broad category of adjustments that...

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...

Recourse Leverage

The leverage in which the so-called recourse borrowing is used. It is backed by collateral posted by the borrower. The...