The Law Dictionary

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

What is DERIVATIVE PRODUCT COMPANY (DPC)

A highly rated, BANKRUPTCYremote SPECIAL PURPOSE ENTITY used by certain financial institutions to undertake DERIVATIVE transactions with COUNTERPARTIES demanding strong CREDIT RATINGS. Through design mechanics based on minimum CAPITAL, COLLATERAL, HEDGING, and DIVERSIFICATION, the DPC can often achieve AAA ratings, even if the sponsoring institution

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