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Basics
of Credit Derivatives
Credit
Derivatives: Market Info and awareness
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Credit derivatives terminology
By
Vinod Kothari Funded derivative: A
credit derivative where the protection buyer not only transfers credit risk in
the reference asset but also raises upfront cash by issue of credit linked notes
or a like instrument. In the event of a risk, the protection seller will have to
compensate the protection buyer from out of such cash held by the protection
buyer. Contrast with unfunded derivative.
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