O'Reilly logo

Managing Derivatives Contracts : A Guide to Derivatives Market Structure, Contract Life Cycle, Operations, and Systems by Khader Shaik

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER   16

Credit Contract Life Cycle

The credit derivatives market is one of the largest and most important segments of the OTC derivatives market. As explained in Chapter 2, the major credit derivatives contract types are the following:

  • single-name credit default swap (CDS), which provides protection on a single reference obligation (bond) issued by a particular reference entity
  • credit default swap index (CDX), which provides protection on a portfolio of reference entities
  • loan credit default swaps (LCDS), which provides protection on a syndicated secured loan
  • index tranche, which provides protection from a particular amount of loss on a portfolio of reference entities

Most credit derivatives contracts are OTC contracts, and they include ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required