A single period OVERTHECOUNTER FORWARD contract that generates a payoff based on the difference between an agreed CREDIT SPREAD (or price) and the terminal credit spread (price) of a creditrisky DEBT reference. See also CREDIT DERIVATIVE.

More On This Topic

Link to This Definition
Did you find this definition of CREDIT FORWARD helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary