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Adjustment

Adjustment has many meanings in multiple contexts. In relation to insurance, it is the determination of the amount due for...

Settlement Option

An option that is embedded in a derivative financial instrument whereby one party has a choice over settlement. In other...

Credit Event Cash Settlement

In the context of credit default swaps (CDS) and similar credit derivatives, settlement takes place once a credit event (bankruptcy,...

Settlement Date

Generally, it is the date a transaction is completed, i.e., the date that performance (the actual exchange: money vs asset...

Cherry Picking

A practice in bankruptcy proceedings whereby a bankruptcy court may enforce contracts that are in the money to the bankrupt counterparty while abrogating contracts...