The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CREDIT DERIVATIVE Definition & Legal Meaning

Definition & Citations:

An OVERTHECOUNTER DERIVATIVE with an UNDERLYING reference that is based on the credit performance of a reference COUNTERPARTY. Credit derivatives are available in various forms, including the BASKET SWAP, CREDIT FORWARD, CREDIT SPREAD OPTION, DEFAULT OPTION, DEFAULT SWAP, FIRSTTODEFAULT SWAP, and TOTAL RETURN SWAP. See also COMMODITY DERIVATIVE, CURRENCY DERIVA TIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE, SYNTHETIC COLLATERALIZED DEBT OBLIGATION.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.